JMS seminar: PMI – a view from Europe
On 18 December 2017, Gideon Franklin gave a seminar at the Japan Management System (JMS) head office in Shimbashi in Tokyo on the theme of post-merger integration (PMI), with a particular emphasis on Europe.
JMS is one of leading Japanese consultancy companies with a particular specialisation in PMI. The company’s main activities are in Japan and Asia. The seminar was an opportunity for our two companies to exchange views and deepen the relationship, as the activities are complementary.
JMS was founded in 1970, a spin-off from Industrial Bank of Japan (IBJ). Today there are some 80 employees, 70 or so of which are consultants. There are three main business areas:
1) Management Consulting
Proven track record of having served more than 1,000 companies and public agencies.
About 80% of clients are repeat clients for further services.
Seminars for executives and managements
e.g. Risk management, Developing skills for business management
Business series (monthly) and books related to business management
Here are some of the themes that were featured in the seminar in December
Phobia of PMI
Japanese companies are typically afraid of PMI, to the extent that this can be a reason for not contemplating an acquisition of any meaningful scale. It is important therefore to recognize the need for a good cultural understanding and to put in place the right measures to overcome any hurdles. An analogy was made with the different cultures for buying a house.
Goodwill and IFRS
The problem of how to deal with goodwill under Japanese GAAP and the opportunity afforded by the move to International Financial Reporting Standards (IFRS) is a big recurring topic in M&A in Japan, but typically underestimated until it is too late. Goodwill is just an accounting convention and nothing to do with cashflow, but has a disproportionate impact on decision making before and after acquisitions by Japanese companies.
Any expansion by Japanese companies might begin at home, then spread to Asia and America, with Europe last on the list due to the complexity of several countries. However, Europe can be a great hunting ground for technologies and truly international companies which can in turn help the Japanese parent to be more global. Then comes the question of where to have your base and in the seminar there was a lot of discussion over why companies would choose different countries.
Click here to view selected slides from the presentation.
Click here to learn more about post-merger integration services offered by Gideon Franklin Ltd.
‘Yane’ by Takeo Takeda, is a symbol of the JMS basic philosophy.
“Small tiles gather to make a roof which becomes a house – this is how we build a town.”
Just as each tile has great importance, it is the philosophy of JMS that each person has great importance.