Tanabe Consulting Supports Hibino's M&A of Ascent to 'Connect Management'

Tanabe Consulting Co., Ltd., a pioneer in Japanese management consulting, supported the growth M&A between its client, Hibino Corporation, and Ascent Co., Ltd.

Rather than stopping at just closing the deal, Tanabe Consulting supported both the growth strategy of the transferee and the succession strategy of the transferor to "connect management" even after the change in capital through its "Integrated M&A Consulting" service.

1. About the Transferee and Transferor Hibino, the transferee, is a Standard-listed company that globally provides products and services centered on sound and video. In its sales and construction business, the company has expanded into AV&IT areas including lighting, control, and networking, focusing on providing total solutions that handle everything from design and construction to operation support and maintenance on a one-stop basis.

Ascent, the transferor, established in 1988, is a sales and construction company for professional sound, video, and lighting equipment. It specializes in products and services for sports facilities and handles everything from design and construction to post-installation maintenance for large-scale LED displays, sound systems, and signage.

2. Succession Strategy to "Connect Management" and Growth Strategy through Synergy Hibino recognized the strengthening of its supply system as a key issue amid the increase in urban redevelopment and stadium/arena projects. Having supported the development of Hibino's long-term vision, Tanabe Consulting was aware of the company's direction and conducted research for candidate companies that could realize Hibino's further growth. Furthermore, because Ascent prioritized deal speed, the companies were able to accelerate the process by closely sharing their future directions, post-M&A images, and expected synergies. Incorporating Ascent, with its rich track record and proposal capabilities in sports facilities, into the Hibino Group has created an M&A with the expectation of multiple synergies.

3. Comments (1) Hibino The synergy from Ascent joining our group can be summarized into three points: ① Strengthening the supply system: Strengthening the system to respond to large-scale projects such as urban redevelopment and stadium/arena projects is a key issue. By bringing Ascent into the group, we will thicken our one-stop provision system, suppress opportunity losses, and accelerate growth in a demand-expansion phase. ② Strengthening integrated proposals: By adding Ascent's knowledge in sports facilities to our total solutions, we will enhance our integrated proposal power, contributing to improving the facility experience value. ③ Mutual utilization of products: We will expand the adoption of sound and video products imported and sold by our group in construction projects handled by Ascent. At the same time, we will expand the deployment of video products handled by Ascent by utilizing our group's sales network, leading to the expansion of revenue opportunities.

(2) Kenji Kigoshi, Former Representative Director and President of Ascent To realize our dream of becoming the No. 1 company in the sports entertainment industry, I came to the conclusion that the best way was to aim for it together with a company we could trust. I connected our management to Hibino, who knows us well and is knowledgeable about the sports entertainment industry. I believe that providing a rewarding and secure environment for our employees was the most important task for me as the founder and previous head of the company.

(3) Shigenori Fumiwa, General Partner, M&A Consulting Division, Tanabe Consulting Since the transferor and transferee were in the same industry and had a deep understanding of each other, we were able to discuss the direction they should aim for after the M&A through multiple meetings. Through respectful and flexible negotiations on both sides, we were able to face the essential theme of "connecting management to the future through M&A," which I believe led to the deal.