In this scenario, the entrepreneur leading the acquisition will use their own resources to purchase and take ownership of the business, rather than relying on funding from external private investors.
In the first stage, a small group of investors back operating managers to search for a target company to acquire.
[1] The bulk of successful search funds have been raised by alumni of elite MBA programs with access to strong private equity networks.
Founded by DBJ, Nihon M&A Center, Inc., Career Incubation Inc., and others, it aims to promote generational changes in management and foster renewed corporate growth.
By establishing search funds in Japan, the initiative seeks to provide a solution to the growing issue of business succession and cultivate a pool of talented future managers.