Precision Measuring Instruments Company

Seller Information

Business Precision Measuring Instruments Company
Top line JPY 1.4 billion
Reason for sale Lack of a successor

Buyer Information

Business Design and Development of FA Machines and Instruments Company
Top line JPY 4 billion
Purpose of acquisition Synergies
Scheme Share Transfer

The target company was a manufacturing and selling “precision measuring instruments (for extruded products)” company in Japan.
The company, built by the president (an engineer) in his generation, had unique technologies and product line-up
, and was developing the market not only in Japan but also in Southeast Asia.
Because the process of selling and maintaining products were well rationalized,
it was an excellent company keeping high-profit rate despite of a small scale.

It was rich in cash flow due to the stable top line and the high-profit rate, however,
his son was not working for the company and there was no potential successor in the company.
Consequently, the president decided to sell the company.

After searching efforts, a letter of intent (LOI) was presented from a precision machining company in Japan.

That company, a non-listed company expanding the business through M&A, considers the uniqueness of the target company as important.
Thus, even after the deal closing, neither the company name nor the headquarters location was not changed.
Since then, that company has expanded the business with the new president sent from the buyer.

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