Who is Shunsaku Sagami?
Japan faces an unprecedented demographic shift; nearly a third of its population is aged 65 or older in 2023. Consequently, this issue is expected to persist and worsen by 2065, thus posing a substantial economic challenge as many small and medium-sized enterprises (SMEs) including those led by Shunsaku Sagami, grapple with the succession dilemma.
A startling statistic reveals that over 99% of companies in Japan fall under the SME category; shockingly, approximately two-thirds lack successors, leaving them at risk of closure.
M&A Research Institute Holdings CEO and founder Shunsaku Sagami is the latest Japanese billionaire.
Amid this profound societal challenge, a young visionary, Shunsaku Sagami, has emerged as a beacon of hope. Remarkably, At a mere 32 years old, Sagami is Japan’s youngest billionaire and the founder and CEO of M&A Research Institute Holdings, a Tokyo-based mergers and acquisitions (M&A) brokerage firm.
The Youthful Trailblazer
Sagami’s path to becoming Japan’s youngest billionaire embodies a narrative of innovation and unwavering determination. After his education at Kobe University, he initially pursued a career in advertising. However, his entrepreneurial spirit and personal experiences led him to establish M&A Research Institute Holdings in 2018.
A Lifeline for SMEs
Sagami’s M&A Research Institute Holdings stands as a lifeline for these businesses in a landscape where SMEs face closure due to aging owners without successors. The company facilitates successful M&A transactions, offering a glimmer of hope for SMEs needing a transition strategy.
Innovative Application of AI
What sets M&A Research Institute apart from competitors is its pioneering use of artificial intelligence (AI). The firm harnesses an AI-powered system that seamlessly matches potential buyers with businesses looking to sell. This technological advantage streamlines the M&A process, making it more efficient and accessible for SMEs seeking solutions to their succession challenges.
Furthermore, Sagami’s company adopts a client-friendly pricing model. Instead of upfront fees, the firm embraces a success fee structure, activated only upon successful deal conclusion. This unique approach endows M&A Research Institute Holdings with a competitive edge.
A Resounding Success
Since its inception, M&A Research Institute Holdings has witnessed remarkable growth. By the end of December 2022, the number of M&A advisors within the firm had doubled to 90. During the same period, the institute reported a net profit of $7.1 million on revenue of $15.7 million. In the fiscal year ending in September 2022, the firm’s annual revenue almost doubled to $28.8 million, while its profit saw an almost fourfold increase to $9.8 million. As of December 2022, the institute had successfully concluded 33 transactions, with an additional 426 deals still in progress.
In response to evolving client needs, Shunsaku Sagami recently oversaw an expansion of the institute’s services, now encompassing asset management. Additionally, this strategic move, driven by inquiries from business owners who, after selling their companies, were eager to explore investment opportunities for their newfound wealth, demonstrates Sagami’s proactive approach to meet market demands.
A Bright Light in Challenging Times
In challenging times, characterized by an aging population and business succession complexities, Shunsaku Sagami and M&A Research Institute Holdings illuminate a path forward. Moreover, they not only rescue businesses from the precipice of closure but also make substantial contributions to the vitality of the national economy. Additionally, Sagami’s extraordinary journey from a budding entrepreneur to Japan’s youngest billionaire stands as a testament to the transformative potential of innovation, unwavering determination, and the profound impact a visionary leader can have on society.
"Otsumami" - a bite size snack:
Sagami has diversified into asset management in response to requests from recently retired business owners.