In a recent ION Influencers fireside chat hosted by Giovanni Amodeo, Tosh Kojima, Managing Director at DC Advisory and Global Head of Asia Access, shared his insights on navigating cross-border deals. The discussion covered a range of topics, including Kojima’s extensive background, the evolution of DC Advisory, and the dynamics of cross-border M&A in Asia. 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.

Conclusion: The fireside chat with Tosh Kojima provided valuable insights into the complexities and opportunities of cross-border M&A in Asia. With a deep understanding of both Western and Asian markets, Kojima and his team at DC Advisory are well-positioned to navigate the evolving landscape of international deals.

Key timestamps:

00:09 Introduction to the Fireside Chats
01:30 Overview of Asia Access Team
02:10 Daiwa Securities Group and M&A History
03:21 Growth of DC Advisory
04:13 Role of Asia Access in Cross-Border Deals
05:03 Brand Identity and Recognition
06:07 Intersection of Daiwa and DC Brands
07:33 The Importance of Personal Branding
08:43 Analyzing Cross-Border Deals by Country
10:53 Private Equity Activity in Japan
12:07 Factors Influencing M&A in Japan
14:18 Impact of Interest Rates on Japan’s Attractiveness
16:15 Private Equity’s Role in Japanese Business
17:24 Comparative Outlook on China and Japan
19:21 Understanding East Meets West in Deals
21:16 Navigating Western Concerns with Japanese Buyers
22:54 Case Study: The Fiery and Seiko Epson Deal
24:59 Trends in Japanese Inbound M&A
26:37 Shifting Attitudes Towards Foreign Acquisitions