TOKYO, Dec 23 (Reuters) – Japan’s Daiwa Securities is aiming to generate 100 billion yen ($635.61 million) in M&A-related revenue by the financial year ended March 2031, its CEO said, as Japan undergoes a dealmaking boom that neared record levels in 2025.
The objective exceeds Daiwa’s current target of 70 billion yen and comes as Japan’s total merger and acquisition deal value hit around $319 billion in the year to December 17, 2025, second only to 2018’s $343 billion, LSEG data showed.
As Japan finally exits deflation, companies are increasingly seeking better returns on their assets, stoking appetite for growth acquisitions, particularly those overseas.
Long-awaited corporate governance reforms have also reignited global investor interest in Japanese firms, sparking a wave of private equity deals and activist investor activity.
“Tokyo will become the starting point for cross-border M&A,” Daiwa CEO Akihiko Ogino told Reuters in an interview.
In April, Daiwa established a dedicated team in Tokyo to coordinate its operations in different countries. The team now has six members, Ogino said.
Daiwa has been on a multi-year M&A-related hiring push, with current numbers at around 640 people but with a view to reaching 900 people by March 2031.
The recruitment drive has kept a lid on M&A-related profits even as revenues hit a record high of 59 billion yen in the year ended March 2025.
“We’re now entering the harvest phase,” Ogino said.
“Japanese firms are at the stage of having to make bolder decisions than ever before,” Ogino said.
($1 = 157.3300 yen)
(Reporting by Miho Uranaka; Writing by Anton Bridge; Editing by Christian Schmollinger)
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