The target company was a hobby shop company, the region’s largest hobby shop, operating in an Aeon shopping mall in Hokushinetsu, Japan.
It was established as a strategic company held by the parent company (a hobby goods wholesaler).
However, because the know-how of the parent company was in wholesale business, the target company could be hardly profitable.
Such being the case, the parent company decided to sell the target company for the “business selection and concentration”.
The potential buyer was a discount shop company in Japan.
As the discount shop company had a great deal of M&A experience, it carried out shop inspection, studied selling zone layout, and offered the shares purchase price
within a relatively short period of time.
Since then, that shop has expanded its product line and has been continuously keeping the employees.