What is a corporate buyout?
There are various methods for acquiring companies that have distributed stocks to their shareholders including the direct sale of stocks from the shareholder to the buyer; or in the case of listed and public companies, purchasing stocks in the market or through a takeover bid (TOB), the latter of which is regulated by law. The management rights of the company are transferred (or not) depending on the volume of shares acquired. Buyouts commonly result in the transfer of management rights.
M&A Process/Services
Advisory Service
Process
Fee Schedule
1. Contracting Fee: 2 million yen
2. Advisory Fee (monthly):1 million yen
3. Achievement Fee (based on fee percentages listed below):
| Under 1 billion yen | 5% |
|---|---|
| 1 billion yen - 2 billion yen | 4% |
| 2 billion yen - 5 billion yen | 3% |
| 5 billion yen - 10 billion yen | 2% |
| Over 10 billion yen | 1% |
Example: Transaction value of 2.5 billion yen
| 1 billion × 5%=50 million yen |
| 1 billion × 4%=40 million yen |
| 5 billion × 3%=15 million yen |
| Total: 105 million yen* |
* Japanese consumption tax not included
