Hayato Kawabata, Byside | Financial Services Review | Top Mergers and Acquisitions Consulting Services Providers in JapanHayato Kawabata, CEO
Byside is reshaping Japan’s mergers and acquisitions (M&A) landscape by honing in exclusively on buyer representation. In an industry crowded with sellers-focused firms that struggle to find the right buyers, Byside’s commitment to buyer-side transactions enables it to facilitate M&A deals with unmatched speed, precision and personalization.

Its innovative "buyer search specialization" model blends AI-powered matching, streamlined processes and close collaboration with M&A advisors, allowing it to pinpoint ideal sellers. This approach has proven invaluable for foreign companies looking to tap into Japan’s robust economy, as well as for Japanese companies struggling with succession challenges.

Our AI system lets us present the most fitting acquisition options quickly and efficiently, saving clients both time and resources

Japan’s escalating succession crisis makes Byside’s approach more critical than ever. With over 2.5 million business owners aged 70 or older, many without clear succession plans, more than 600,000 companies face the risk of closure, potentially destabilizing entire sectors of the economy. Byside is a lifeline, connecting these vulnerable businesses with the right buyers, securing their futures, and safeguarding the industries they support.

Guided by the expertise of CEO Hayato Kawabata and Vice President Daisuke Tanabe, who held roles at Nihon M&A Center, Japan’s largest brokerage, Byside’s foundation is built on a deep understanding of buyer-side dynamics. Nihon M&A Center was the first firm to separate buyer and seller representation, a practice Byside continues with its buyer-first philosophy. Kawabata and Tanabe have refined this approach over the years to efficiently identify the best acquisition matches. Their unmatched experience with Japanese buyers puts Byside in the perfect position to close deals swiftly and successfully. The team comprises advisors with extensive experience in Japan’s leading brokerage firms who bring deep market insights.

Central to Byside’s operations is its network of over 300 M&A advisory firms, offering buyers access to an array of acquisition opportunities, including exclusive, off-market deals. This expansive network allows it to match each buyer with opportunities that align perfectly with their needs. With around 60 deals per month, contacting 50 to 100 potential buyers per deal, it reaches as many as 6,000 companies in a remarkably short timeframe. This high-volume, streamlined approach significantly accelerates M&A timelines, ensuring deals are completed with remarkable efficiency and precision.

“As a buyer-focused firm, our goal is to bring your project to a successful conclusion in the shortest possible time,” says Kawabata.

Speeding Up M&A Deals from Months to Weeks

Swift and seamless transactions are possible in Japan’s M&A landscape with the right expertise. Partnering with Byside, firms can locate potential buyers in as little as one week. Once teams find a match, they can close the deal within two months—a sharp contrast to the typical drawn-out timelines, where deals often stall for six months or more. This rapid pace underscores Byside's decisiveness, ensuring clients don’t miss valuable acquisition opportunities.

To further enhance its efficiency, Byside has integrated an AI-powered matching system into its M&A process. Cutting-edge technology enables faster, more precise buyer searches, allowing it to swiftly present the most suitable deals to its clients, optimizing both speed and accuracy in the transaction flow.

  • As a buyer-focused firm, our goal is to bring your project to a successful conclusion in the shortest possible time

“Our AI system lets us present the most fitting acquisition options quickly and efficiently, saving clients time and resources,” says Kawabata.

Tailored M&A Solutions for Every Client

Byside’s approach is far from generic. It is deeply personalized to fit each client’s distinctive needs. Its client base consists primarily of midsized Japanese companies with annual revenues exceeding one billion yen. Many of these businesses lack a clear M&A strategy and rely on Byside’s advisory services to help them navigate opportunities on a case-by-case basis.

The firm excels at decluttering the often chaotic M&A information landscape. In Japan, companies cannot easily sift through available data to find relevant acquisition targets. Byside organizes and curates information, presenting buyers with only the most pertinent insights, saving them time and money. This level of clarity and precision allows buyers to focus on making decisions that align perfectly with their strategic goals.

A personalized approach is key to clients’ continued success. Reviewing hundreds of M&A opportunities introduced by a wide array of advisory firms, Byside selects only those deals that truly fit each client’s needs, delivering acquisitions that drive long-term growth.

While the firm typically focuses on buyer searches, Byside is fully equipped to manage both sides of a transaction to meet client needs. The client-first philosophy is further reinforced by its success-based fee structure. Unlike traditional M&A firms that require upfront fees or monthly retainers, Byside charges clients only when they successfully complete a deal. This alignment of interests fosters trust and solidifies long-term partnerships.

Bridging Global Investors with Japan’s M&A Opportunities

While Byside has established a strong foothold in the domestic market, it is also expanding its international reach. Recognizing the growing interest from foreign investors, the firm has cultivated strong relationships with financial advisors outside of Japan. This global network allows it to act as a bridge for inbound M&A transactions, connecting international buyers with lucrative opportunities in Japan.

A standout example is Byside’s facilitation of an exit deal for a Japanese manufacturing company with multiple subsidiaries, including overseas operations. Despite numerous Japanese brokerage firms attempting to find a buyer, geographical constraints posed significant challenges. Leveraging its extensive connections, Byside introduced a foreign company as a potential buyer, skillfully navigating Japan’s foreign exchange law regulations and successfully closing the deal.

With 50 to 60 deals monthly, Byside provides a gateway for foreign investors to capitalize on Japan’s business landscape. Its deep understanding of local regulations and extensive advisory network makes it an invaluable partner for companies seeking to enter the market.

Byside also excels at facilitating outbound transactions and actively seeks partnerships with foreign financial advisors who have companies for sale and want to connect with Japanese buyers.

An example of Byside’s cross-border expertise is a transportation services deal introduced by an overseas financial advisor. It successfully facilitated the transaction, ensuring both parties—a Japanese buyer and a foreign seller—were satisfied with the outcome.

Byside is poised for its next growth phase, with an initial public offering on the Tokyo Stock Exchange on the horizon. Going public will enhance its market presence and strengthen its relationships with domestic and global M&A advisors.

As it prepares for this next phase, it continues to innovate, with plans for international expansion and further integration of advanced technologies. Staying true to its buyer-focused model, Byside is set to transform the M&A landscape in Japan and beyond.