Comprehensive Funding Model Specialized for SME Manufacturing Business Succession: A New Framework to Mitigate Shareholder Dilution

Serendip Holdings Co., Ltd. has decided to establish a new company, 'Monozukuri Business Succession Holdings (JMS),' specializing in business succession and long-term investment for small and medium-sized manufacturing enterprises. To date, the company has focused on M&A for business succession, management improvement, and post-merger integration (PMI) for SMEs. By prioritizing long-term ownership rather than immediate divestment, the company supports the restructuring of management systems and the execution of growth strategies. Recognizing the challenge of securing M&A funds while avoiding shareholder dilution from equity issuance, Serendip is creating JMS as a comprehensive funding platform. The Shoko Chukin Bank and Kyoto Capital Partners will invest a total of 2 billion yen, with plans to expand to 10 billion yen by recruiting strategic partners. Additionally, the group company Apex will be brought under the JMS umbrella to enhance corporate value for both entities.