This article explains the importance of utilizing foreign capital for corporate value enhancement and key points for success.
Key Points
1. Expansion of Foreign Capital Utilization
- Japanese companies' utilization of foreign capital has increased approximately 3-fold in number and 5-fold in amount compared to 10 years ago
- Collaboration with foreign companies is at the highest level in the past 10 years
- Acceptance of investment from foreign business companies and foreign PE funds is spreading as a management strategy
- Recognition is expanding as an option for corporate value enhancement and entry into overseas growth markets
2. Background for the Need for Foreign Capital Utilization
- Accelerating speed of market environment changes makes it difficult to respond with only internal management resources
- Need to break away from excessive self-reliance to achieve sustainable business growth
- Increasing importance of incorporating not only domestic but also overseas vitality
- Necessity of corporate value enhancement in global competition
3. Advantages and Disadvantages of Foreign Capital Utilization
- Advantages: Incorporation of superior management know-how, technology, and business models
- Realization of advanced management and financial management
- Expansion of overseas sales channels utilizing global networks
- Disadvantages: Need to be aware of business rationalization and unintended technology outflow
4. Five Basic Actions for Success
- Organized actions that management should take when considering foreign capital utilization
- Importance of clarifying strategy before entering matching and negotiations
- Continuation of dialogue after accepting investment is also an important point
- Classification of processes to enhance effectiveness of foreign capital utilization into 5 stages
5. Government Support Measures
- Ministry of Economy, Trade and Industry published "Guidebook for Utilizing Foreign Capital for Corporate Value Enhancement"
- Contains basic knowledge of foreign capital utilization and actions expected of management with specific examples
- Provision of J-BRIDGE (business platform for collaboration and cooperation)
- Continuous support system by the Investment Promotion Division
The article concludes that foreign capital utilization should be used not merely as a means of fundraising but as a strategic tool for corporate value enhancement and strengthening international competitiveness.