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Buyout Investment

The objective of buyout investments is to increase the corporate value of targeted companies by holding the majority interest of those companies through sell-off of shares for business succession due to the lack of a successor, or management buyout, spin-off of non-core businesses, and conducting several measures such as appointment of new management team, review of growth strategy, enterprise restructuring, and other actions.

Positioning of Buyout Funds and Enterprise Restructuring Funds

Investment Opportunities and Buyout Market Expansion

Today, increasing number of businesses are utilizing investment funds on an occasion of management turnover or disposal of non-core businesses and subsidiaries, which are positively transacted in large companies in the process of “Selection and Concentration.” Besides the above, listed companies deciding to go private by MBOs or other actions in order to avoid stock price movements attributable to the short-term fluctuations in performances following the fundamental restructuring of business, are also choosing to utilize investment funds. Thus, the opportunities for investment have increased and the Japanese domestic buyout market itself is expanding.

Investment Opportunities and Buyout Market Expansion

Economic Cycle and Buyout Investments

The recovery from the collapse of Lehman Brothers and the Great East Japan Earthquake facilitated the improvement of corporate business structure, and more companies now attempt to reconstruct their business portfolio. Moreover, the retirement of business managers and other factors have brought buyout investment opportunities.

Value Up Strategy Through a Hands-on Approach

In most cases, SBI CAPITAL dispatches full-time managers to investee companies, and commits 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.

Succeeded in Improving Corporate Value Through a Growth Strategy as Well as Financial Restructuring

Case Examples:

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

Principal Group Company