SERVICES

Due Diligence & Valuation

Due Diligence

TVC streamlines M&A transactions with thorough financial and tax due diligence, prioritizing client needs. Our tailored valuation methods ensure the most beneficial approach for each client.

Due Diligence

Capital Raising

Detailed investigations to identify and evaluate risk factors, helping
buyers verify value, reduce prices, and improve negotiations.

Risk Identification
& Evaluation

Risk Identification & Evaluation

  • We identify and evaluate various risk factors related to M&A transactions through detailed investigations. This helps buyers to verify corporate value, reduce acquisition prices, and improve their negotiating positions.

Comprehensive
Analysis

Comprehensive Analysis

  • Our due diligence covers a wide range of areas including financial, tax, legal, environmental, business, human resources, and IT perspectives.

Strategic
Advantage

Strategic Advantage

  • By gathering and analyzing critical information, we enable buyers to make informed decisions and mitigate potential risks, ensuring a smoother transaction process.

Company Valuation

At TVC, we specialize in comprehensive company valuation, utilizing a variety of advanced methods to provide accurate and tailored assessments for our clients. Our expertise covers several key valuation techniques:

Know More About Valuation

This method values a company based on its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), multiplied by a market-driven multiple. The multiple is typically derived from comparable companies or industry averages.

  • Best Used For:
    Mature Companies: Best suited for established businesses with stable earnings.
  • Industry Comparisons: Useful when comparing companies within the same industry, as it normalizes differences in capital structure, tax rates, and depreciation policies.
  • Quick Assessments: Provides a straightforward and relatively quick valuation method.
OBJECTS

Also known as market multiples, this approach compares the company in question with similar businesses in the same industry. The valuation is based on multiples like Price-to-Earnings (P/E), Price-to-Book (P/B), or EBITDA multiples.

Best Used For:

  • Market-Driven Valuations: Ideal for determining a company’s value in the context of current market conditions.
  • Benchmarking: Provides a solid benchmark by comparing similar companies’ valuations, which is useful when market data is readily available.
  • Public Companies: Particularly effective for public companies where market data is accessible.

This method values a company based on the difference between its total assets and liabilities. The focus is on the tangible value of the company’s net assets.

Best Used For:

  • Asset-Heavy Businesses: Particularly effective for companies with significant tangible assets, such as real estate, manufacturing, or natural resources.
  • Liquidation Scenarios: Useful in liquidation or distressed scenarios, where the value of assets is the primary concern.
  • Holding Companies: Suitable for holding companies or investment firms where the value of underlying assets is more relevant than cash flow.

This method involves forecasting a company’s future cash flows and discounting them to present value using an appropriate discount rate. It focuses on the intrinsic value of the business based on its future earning potential.

Best Used For:

  • Growth Companies: Ideal for companies with predictable and steady cash flow growth, including startups or firms in expansion phases.
  • Long-Term Investments: Useful for investors focused on long-term value, as it considers future potential rather than just current earnings.
  • Businesses with Unique Growth Models: Effective for companies with unique business models or those in industries with high growth potential..

EPV calculates a company’s value based on its sustainable earnings, assuming that current earnings can be maintained indefinitely. This method focuses on the company’s ability to generate consistent profits.

Best Used For:

  • Stable Businesses: Suitable for companies with stable and predictable earnings, often in mature industries.
  • Conservative Valuations: Ideal for conservative valuations where the focus is on the company’s ongoing earning power rather than growth potential.
  • Companies with Consistent Cash Flows: Best for businesses that have demonstrated a history of stable cash flow and profitability.

Why Choose Us?

Selection of Target Companies

Our primary task is to search for target companies that align with the buyer's management strategy.

Identifying Potential Targets

We search among over 3 million companies in Japan, both listed and unlisted, to find suitable candidates.

Cross-Border M&A

Cross-border transactions pose challenges like limited information. We use our FA network to identify the right industry, country, and top target candidates.

Negotiation with Potential Targets

We engage with companies that express an intention to sell, assessing their suitability as acquisition targets.

Global Expertise

For cross-border M&A, we stress the importance of choosing an advisor with a broad network, multilingual skills, and expertise in local laws, including foreign investment regulations.

Contract Conclusion Support

Once the seller and buyer reach an agreement, we provide support in finalizing the contract.

Expert Consultation

Collaborating with accountants, lawyers, and tax accountants to evaluate the pros and cons of each scheme.

Optimal Scheme Selection

Identifying the most suitable scheme that meets the acquisition conditions, showcasing our advisors' specialized knowledge.

In cross-border M&A, we coordinate transactions with relevant parties in each country through our global network.

Contractual Clauses

Ensuring important clauses related to transaction terms and amounts are included, as they significantly impact management policies and financial outcomes post-M&A.

Compliance with Laws and Tax Systems

Since laws and tax systems vary by country and are subject to frequent changes, we consult with external experts in each country and compile their opinions.

Stakeholder Coordination

Guiding the transaction to completion by coordinating with sellers, buyers, shareholders, creditors, and other stakeholders.

Contractual Clauses

Ensuring important clauses related to transaction terms and amounts are included, as they significantly impact management policies and financial outcomes post-M&A.

Stakeholder Coordination

Guiding the transaction to completion by coordinating with sellers, buyers, shareholders, creditors, and other stakeholders.