The objective of buyout investments is to increase corporate value of targeted companies by conducting several measures such as spin-offs of non-core businesses to management using an MBO; acquisition of majority interest of company with no successor, appointment of new management team, review of growth strategy, enterprise restructuring, and other actions.
Today Japanese firms are moving to the "Concentration in Core Competence" strategy through sales of non-core businesses or subsidiaries as Japan's economic recovery promoted the improvement of corporate business structure. In addition, increased investments by activists who aggressively demanded a dividend increase forced listed companies to recognize the necessity of measures against takeover bids. Also, an increasing number of listed firms have decided to go private through MBOs.
・245 buyout deals were done from 1988 to Oct. 2005. The sum total of buyout deals reached 2.6 trillion yen.
・In 2006, the sum total of Softbank's merger with Vodafone amounted to 1.75 trillion yen.
・108 buyout funds were established through Oct. 2005, and the total commitment amount reached 1,828.6 billion yen. The scale of the market including funds investing in Asia and principal investments topped 3 trillion yen.
As Japan's economic recovery facilitated the improvement of corporate business structure, more firms now attempt to reconstruct their business portfolio despite some losses. The retirement of business managers who were born after the war, and other factors have brought buyout investment opportunities.
In most cases, SBI CAPITAL dispatches full-time managers to investee companies, and have been committed to the entire range of corporate activities from management through figures on a weekly basis to business planning, along with executives and employees of the investee companies.
Shift from the founder's management based on "approximate estimation" to elaborate management through figures including segment profit management
・Take measures for improvement of asset efficiency such as a sale of assets and an accurate control of inventory
・Profit improvement through significant cost cuts primarily in constant expenses
・Shift from the "share-oriented" to "profit-oriented" strategy, and become profitable despite a decrease in sales
・Introduce business partners including large enterprises, utilizing the SBI Group's network
・Design and execute a marketing strategy including product pricing
・Implement a review on money-losing segments and facility investments with a strict feasibility study
・Induce the Executive Officer System to distinguish between management and execution
・Induce the incentive system such as stock options in order to increase employees' motivation
SBI CAPITAL designs and executes a "custom-made" strategy other than conventional strategies, after taking into consideration synergies with investee companies
・Reinforcement and control of corporate governance
・Provide support for M&A with competitors in terms of funding and executing
・Take advantage of business resources of the SBI Group and investee companies that reach several hundred firms
・Strategic and efficient capital policies and advice on Investors Relations
