Intragroup <192A> has been providing M&A intermediary services mainly for small and medium-sized enterprises since its establishment. It was newly listed on the Tokyo Stock Exchange growth market on June 18th.

The company's characteristics include a complete success fee system (zero start-up fee, zero interim fee), low minimum success fee, and a success fee calculation method based on the transaction amount. It is an M&A intermediary company with a complete success fee system for both sellers and buyers and has a pricing competitiveness in the small-scale case segment, which is the volume zone of the domestic small and medium-sized enterprises M&A market, in addition to its low fees compared to the four major M&A intermediary companies.

The sales for the fiscal year ending May 24th increased by 72.6% YoY to 2.197 billion yen, and operating profit increased by 4.1 times YoY to 0.983 billion yen. They worked on strengthening direct marketing, intent marketing that efficiently approach potential customers, and actively pursuing M&A projects, in addition to advertising dissemination. The number of successful cases was 53 (47 in the previous year), the sales per successful case was 0.041 billion yen (0.027 billion yen in the previous year), the number of successful deals per consultant was 1.8 deals (1.8 deals in the previous year), and the average number of consultants was 30 people (26.5 people in the previous year). In addition, the earnings forecast for the fiscal year ending May 25th has been disclosed, with sales forecasted to increase by 31.9% YoY to 2.897 billion yen and operating profit forecasted to increase by 20.3% YoY to 1.183 billion yen. They plan to expand their business performance by maintaining the sales per successful case and the number of successful deals per consultant and increasing the number of consultants.

There are two reasons why the sales per successful case for the fiscal year ending March 24th increased significantly. One is because the minimum success fee was raised to 15 million yen in July 23rd, which led to an increase in sales due to the price increase effect compared to the previous year. The other is that sales increased due to not only the small-scale cases but also the medium- and large-scale cases in which they were partially superior in price competition with competitors. In addition, the company has a training system that can develop high-level consultants early and provides a comfortable working environment, so it can be assumed that the average number of consultants will steadily increase in the future.

Due to reports that the government is cracking down on M&A intermediary fees, M&A-related stocks have been selling off since June 10th. Although there are concerns about its impact on this company, it can be presumed that the impact will be minor because they originally have the characteristics of a low minimum success fee and modest pricing. In addition, the need for business succession is increasing mainly among small and medium-sized enterprises in Japan. While competing with major M&A intermediary companies, the company is expected to achieve double-digit growth in performance in the future along with a tailwind in the business environment.