'The Country of Inheritance' Japan... A 32-Year-Old Self-Made with Net Assets of 1 Trillion Emerges

Shunsaku Sagami... Net Assets of 1.27 Trillion KRW
Eliminating Inefficiencies in Corporate M&A Through AI
Currently Managing Over 500 Ongoing M&A Deals

In Japan, where inheritance and succession are common in the political and economic sectors, a self-made 32-year-old billionaire has emerged, attracting attention. The secret to this billionaire's success lies in brokering mergers and acquisitions (M&A) of small and medium-sized enterprises (SMEs) that are on the verge of disappearing in the super-aged society.

On the 15th (local time), foreign media such as Forbes and Bloomberg reported that Shunsaku Sagami, founder of M&A Research Institute Holdings, has a net worth of approximately $950 million (about 1.27 trillion KRW).

Since M&A Research Institute Holdings was listed on the Tokyo Stock Exchange in June last year, its stock price has surged by up to 300%. Sagami, who owns 72.4% of the company's shares, has joined the ranks of billionaires in Japan.

Founded by Sagami in 2018, M&A Research Institute Holdings uses AI to analyze corporate data and broker mergers and acquisitions. The main targets are profitable SMEs with sales around 500 million yen, whose founders are approaching retirement due to old age. Currently, there are about 500 ongoing M&A deals.

During the six months until March, M&A Research Institute Holdings completed 62 transactions. Sales during this period reached 3.9 billion yen (38.4 billion KRW), more than doubling compared to the same period last year.

Japan Faces Super-Aged Society, 620,000 Companies at Risk of Closure Due to Lack of Successors

The Japanese government estimated that by 2025, there will be 2.5 million small and medium-sized enterprises owned by individuals aged 70 or older. Among them, half have no successors to take over the company.
[Photo by AP·Yonhap News]

In Japan's super-aged society, many companies face closure because there are no successors to take over. According to M&A Research Institute Holdings, 620,000 profitable companies in Japan are at risk of shutting down due to the absence of successors.

The Japanese government also views the super-aged society as a serious problem, as the number of companies facing closure due to this issue is expected to increase. The government estimates that by 2025, there will be 2.5 million SMEs with owners aged 70 or older, half of which lack successors to lead the company.

If all these companies close, a total of 6.5 million jobs will disappear, and Japan's gross domestic product (GDP) is projected to suffer a loss of 22 trillion yen (216 trillion KRW).

Sagami turned the issue of corporate survival amid super-aging into a business opportunity. Born in 1990, Sagami proposed a new M&A method that does not rely on banks. Unlike typical M&A agents who conduct transactions through banks, M&A Research Institute Holdings brokers deals based on a vast database it has built. Transactions can be completed as quickly as within six months.

Sagami's interest in M&A stemmed from his indirect experience with this problem in the past. His grandfather ran a real estate brokerage in Osaka all his life but struggled due to the lack of a successor. To make matters worse, the M&A deal did not go through, and the brokerage closed upon his grandfather's retirement. Through this experience, Sagami realized the importance of M&A.

Of course, Sagami did not start his career in the M&A field. After graduating from university in 2015, he founded a company called Alpaca, which was involved in fashion-related advertising and media. Alpaca, founded when he was 24, grew rapidly and was later acquired by Vector, one of Japan's leading PR and media companies.

Saga-mi, born in 1990, proposed a new M&A method that does not rely on banks. Unlike M&A managers who typically conduct transactions through banks, M&A Research Institute Holdings intermediates M&A based on a vast amount of data it has independently built.
Photo by Pixabay

While exploring new business ideas, Sagami became interested in M&A. He focused particularly on the inefficiencies in the M&A process. Forbes pointed out, "About 99% of companies in Japan are SMEs, many of which fail due to improper M&A," adding, "Sagami capitalized precisely on this point."

In 2018, Sagami established M&A Research Institute Holdings in Tokyo, and the company became a huge success. SMEs dreaming of growth through M&A flocked to him. As growth continued, he listed his company on the Tokyo Stock Exchange and became a billionaire by holding 73% of its shares.

Becoming a billionaire marks a new beginning for him. According to Forbes, Sagami's current interest goes beyond M&A to asset management. Forbes reported, "(After generating sudden large profits through M&A,) what matters more is how to properly grow assets, which is now Sagami's focus and the direction of his corporate management."

This content was produced with the assistance of AI translation services.