Navigating Cross Border deals: DC Advisory's Tosh Kojima chats with Giovanni Amodeo, Mergermarket, a service of ION Analytics

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Key topics discussed

Tosh Kojima’s Background:

• Kojima’s career spans strategic consulting, venture capital, private equity, corporate finance, and investment banking
• He has worked in major financial hubs including Tokyo, Sydney, Hong Kong, New York, and London

DC Advisory and Daiwa Securities Group:

• DC Advisory operates as the international M&A arm of Daiwa Securities Group, Japan’s second-largest investment bank
• The firm has expanded significantly, with offices across Europe, Asia, and the US, and a strong focus on sell-side advisory, capital raising, and restructuring

Building the Asia Access Team:

• Kojima leads a team of Asian bankers in London and New York, focusing on cross-border M&A transactions
• The team leverages Daiwa’s extensive network and relationships to facilitate deals between Asia and the West

Brand Identity and Synergy:

• The distinct branding of DC Advisory and Daiwa Securities allows for independent and neutral advisory services
• Increasingly, the brands are intersecting due to the growth of Western private equity in Japan

Cross-Border M&A Trends:

• Japan’s M&A market has seen significant growth, with Japanese corporates increasingly engaging in cross-border deals
• The influx of private equity capital into Japan has led to a surge in high-quality assets being available for acquisition

Challenges and Opportunities in Japan:

• The changing corporate governance landscape and the rise of private equity have created a favorable environment for M&A
• Japanese companies are now more willing to dispose of non-core assets, leading to increased deal activity

China’s M&A Landscape:

• While outbound M&A from China has returned to pre-COVID levels, the nature of deals has evolved
• The emergence of Chinese private equity is driving new types of transactions, focusing on distribution channels and local market entry

East Meets West: Cultural Dynamics in M&A:

• Kojima emphasized the importance of patience and understanding cultural differences when engaging in cross-border deals
• Japanese buyers are known for their long-term strategic thinking and commitment once a decision is made

Notable Deals:

• Kojima highlighted the sale of Fiery from a US-based private equity firm to Seiko Epson of Japan as a significant cross-border transaction
• This deal exemplifies the potential synergies and successful outcomes of East-West collaborations