Market Insights Financial Corporate Finance

Mergers and Acquisitions - Japan

Japan

The transaction value in the Mergers and Acquisitions market is projected to reach €47.91bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 2.36% resulting in a projected total amount of €49.04bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to €109.70m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (€1,260.00bn in 2024).

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Analyst Opinion

The Mergers and Acquisitions market in Japan is experiencing significant growth and transformation.

Customer preferences: Japanese companies are increasingly looking to expand their market presence and diversify their offerings through strategic acquisitions. Customers prefer M&A deals that allow them to access new technologies, expand their customer base, and achieve cost synergies.

Trends in the market: One key trend in the Japanese M&A market is the rise of cross-border acquisitions. Japanese companies are seeking opportunities overseas to counterbalance the slow domestic market growth. Additionally, there is a growing trend of consolidation within certain industries, such as technology and healthcare, to enhance competitiveness and innovation.

Local special circumstances: Japan's aging population and low birth rate have led to a shrinking domestic market, prompting companies to look for growth opportunities outside the country. Moreover, the traditional corporate culture in Japan, which values long-term relationships and stability, influences the approach to M&A deals, often prioritizing cultural fit and strategic alignment.

Underlying macroeconomic factors: The economic landscape in Japan, characterized by low interest rates and abundant liquidity, has created a conducive environment for M&A activities. Additionally, regulatory reforms aimed at promoting corporate governance and shareholder value have encouraged companies to engage in M&A as a means of driving growth and enhancing profitability.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.