M&A Cloud raised JPY 1.25bn through debt financing

M&A Cloud has raised a total of 1.25 billion yen through debt financing from Kiraboshi Bank, Shizuoka Bank, Japan Finance Corporation, Mizuho Bank, Sumitomo Mitsui Banking Corporation, and Fivot (Flex Capital). The funds raised will be invested in hiring to strengthen the organization, as well as in marketing to expand the advisory business and the matching platforms “M&A Cloud” and “Funding Cloud”.

M&A Cloud operates four businesses:

• the “M&A Cloud,” an M&A matching platform where buyers are visible;
• the “Funding Cloud,” a matching platform that supports fundraising for operating companies;
• the “M&A Cloud Advisory Partners (MACAP),” where experienced M&A advisors primarily handle startup M&A advisory services; and
• the “M&A Cloud Agent,” where M&A agents contracted with M&A Cloud support business succession cases nationwide.

In recent years, the need for M&A advisors has increased along with the expansion of the M&A market. Generally, the number of cases that can be supported through M&A intermediation by advisors is determined by their number, making advisor hiring essential for business expansion.

On the other hand, M&A Cloud estimates that the number of M&A advisors nationwide is only around 2,000, which is extremely low. Therefore, hiring experienced advisors has become an important issue for growing the company.

As a result, M&A Cloud has determined that utilizing debt financing for hiring M&A advisors and expanding marketing activities is the best approach to enhancing corporate value.

Moving forward, M&A Cloud will continue to use financing strategically to achieve its mission of “bringing a distribution revolution to M&A through the power of technology” and aim to expand both the platform business and advisory business.

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