Making Japanese M&A work for companies and investors
The situation: value destruction from a lack of process integrity
Year after year, news of scandals, impairment losses, and sales under pressure confirm the challenges of Japanese M&A: with too much cash on their books, too few domestic organic growth opportunities, and no inclination to increase dividends or buy back shares, Japanese companies regularly drive down value through expensive acquisitions, followed by ineffective synergy capture. There is ample literature covering the topic. The list includes the globally low-value M&A creation record, high premiums paid by Japanese companies, and the high number of write-downs in Japan.
Performance magazine issue 24, September 2017
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.