1. About the Sasakawa Corporate Revitalization Fund
【the meaning to exist】
To revitalize excellent small and medium-sized enterprises and their managers who have been unable to respond to rescheduling of repayments by banks, etc. after the termination of the Small and Medium Enterprise Financing Facilitation Act.
Beyond that, we should revitalize small and medium-sized enterprises, which account for the majority of Japanese companies, and lead to the boosting of the Japanese economy as a whole.
It will start after the bank asks about the revitalization of the target company.
(At that time, the bank may be forced to dispose of the receivables of the target company under the guidance of the Financial Services Agency, such as because the receivables of the target company are in management posts or subject to bad debt reserves. After that
, we plan to revitalize the target company by liquidating the defective part of the target company that has been approved for revitalization by the Small and Medium Enterprise Revitalization Support Council under the Small and Medium Enterprise Agency.
[Necessity of fund]
After liquidating the defective part of the target company, it will be necessary to finance or invest in working capital.
The exit method differs depending on the intention of the investor in the fund and the current owner, but we consider the following as a main example.
- Transfer of shares to the successor of the current owner’s family in installments
- Make inquiries in advance to the business company that will be the sponsor candidate, and resell after the establishment of the new company
- Other companies in the same industry, etc. are sold as M&A projects after increasing their value through M&As and mergers
2.Mechanism of Corporate Revitalization Fund
Companies with good business performance but large debts that are difficult to repay are divided into good parts and bad parts, and the good parts are supported by funds to revitalize them as new companies.
Clean up the bad parts. Of course, the consent of the creditor is required, so the fund side will negotiate.
The new company can be bought back by the former management team, founder, etc. It is possible to buy back the new company on track with fund guidance over 2 to 3 years, so business continuity is possible without a decline in business motivation.
[Significance of a corporate turnaround fund]
If a company goes bankrupt due to excess debt, whether it is a company that is leading the way in Japanese technology or a company with a long history, it will lose its technology and tradition.
There are many companies that are doing well as long as they can sort out their debts
Revitalizing a valuable company without extinguishing it is considered to be a social contribution itself.
[Details of the Corporate Revitalization Fund]
By leaving the good parts (technology, tradition, culture) of the revitalized company and establishing them as a new company and providing management guidance, financial improvement and sound management will be carried out.
Once things are on track, we will secure yields through M&A or sales.
The existence of this fund will be important by negotiating with creditors such as banks, which the former management team could not do.
With the cooperation of securities companies, debt collection companies, etc., we will realize revitalization by conducting negotiations smoothly.