In the previous issue, we reported on the investment in a food container manufacturer by Mitsui and FPCO and the investment in a facility management company by Japan Elevator Service announced in May 2022. In this issue, we focus on M&A and IPO (Initial Public Offering) as exit strategies for start-up companies.
M&A is a method of recovering invested capital by transferring shares to a specific third party, while in the case of an IPO, a company can recover its invested capital by going public and finding a buyer for its shares in the market or concluding a transfer agreement with a specific investor before listing. Conventionally in Japan, IPO has generally been aimed as an exit strategy for start-up companies, but in recent years the proportion of M&A has also increased. The main advantages and disadvantages of both are therefore summarized below.