Ties were off and laughter was on during last Friday’s American Chamber of Commerce’s Chubu Chapter’s Independent Business Committee’s (IBC) talk with Julian Bashore, General Manager of MacDermid Performance Solutions Japan K.K. held at the Coat of Arms Bar & Restaurant in the Nishiki area of Nagoya City. Mr. Bashore discussed ideas on how to best appeal to buyers when you are going to sell your business. The mood was informal, as is typical of the Nagoya chapter’s IBC events, but the guidance was serious and clear on how to get your business in shape for sale and what a business owner should expect from prospective buyers.
As part of the IBC’s “10 Points on Business” series, Mr. Bashore spoke to 14 guests, including the ACCJ’s national President and Northrop Grumman Japan CEO Om Prakash. Mr. Bashore explained 10 points which were basically split between external and internal approaches an owner can take to increase the value of their business.
For the external approaches, Mr. Bashore suggested an owner create a figurative moat around their business to solidify its competitive standing in its market. This would minimize the threats of new entrants, minimize the threat of substitute products, diversify suppliers and minimize the power large customers could have, according to Mr. Bashore.
Internally, Mr. Bashore continued to explain to take steps such as owners minimizing risk with their businesses, increasing recurring income, documenting actions and promises within your organization, systematizing routine in-house procedures, and basically ensuring that your business could thrive without the owner being present.
Mr. Bashore was asked questions from the guests about the types of buyers one can expect in Japan, and he answered that the most common ones are private equity firms looking for reliable profit. Other than private equity, he also said that some corporations in the same market look for strategic partners to increase their overall size and to strengthen their position within their market. He also commented on Japan’s unique business brokerage system where both seller and buyer are encouraged to use the same broker. he advised that using your own advocate to negotiate with buyers would be a better option.
The talk was concluded with a sincere thanks and certificate of appreciation from Steve Brown, Co-Chair of the ACCJ’s Chubu Chapter’s IBC and president of Zergsoft, an American owned software development company in Nagoya.
The IBC announced its next “10 Points on Business” dinner will be held on Aug. 18 and Sam Tumeh, CEO of Nagoya-based Horizon Farms, will speak on his “Millennial Approach” to running a business. Seating will be limited to 20 people, so please register early. The Chubu Chapter of the ACCJ regularly holds both in-person and online events that are open to members and nonmembers. Please contact us for more information.