Financial Crime World

Japanese Companies Face M&A Challenges Due to Limited Due Diligence Capabilities

Background

As Japan’s economy continues to globalize, mergers and acquisitions (M&As) have become a common strategy for companies looking to expand their reach. However, many foreign-owned Japanese subsidiaries are finding it difficult to conduct due diligence assessments, a critical step in the M&A process.

The Challenge

According to industry insiders, only the Big 4 accounting firms seem capable of carrying out thorough due diligence assessments, which has led to cases of abandonment due to the high costs involved. This has resulted in a lack of transparency and increased risk for both buyers and sellers.

Solution

Probitas Tax Corporation is offering specialized due diligence services specifically designed for foreign-owned Japanese subsidiaries. The company’s team of experts can prepare comprehensive reports in English, covering areas such as:

  • Financial
  • Tax
  • Legal
  • Human Resources
  • Labor
  • Technology/IT

“We understand the importance of conducting thorough due diligence assessments in the M&A process,” said a spokesperson for Probitas Tax Corporation. “Our services are designed to provide foreign-owned Japanese subsidiaries with the necessary information to minimize risks and make informed decisions.”

International Capabilities

In addition to its domestic services, Probitas Tax Corporation is also well-equipped to handle international due diligence assessments through its membership with BOKS International, a network of over 100 accounting and law firms worldwide. The company can facilitate introductions to local accounting and law firms for conducting due diligence on overseas subsidiaries and provide DD reports in Japanese.

This allows foreign-owned Japanese subsidiaries to access global expertise while maintaining cultural sensitivity and language proficiency.

Pricing

For more information on Probitas Tax Corporation’s due diligence services, interested parties are invited to contact the company for a quotation. With simplified reports starting from ¥1,000,000, Probitas Tax Corporation is poised to become a go-to partner for foreign-owned Japanese subsidiaries seeking to navigate the complex world of M&As.