THE WHY HOW DO COMPANY announces the release of the 'WhyHowDo M&A & Business Succession Report' Vol.3, as part of its initiative to provide information on the business succession and M&A market for mid-sized and small-to-medium enterprises.

1. Purpose of Publication

This report aims to inform shareholders, investors, and the broader public by analyzing SME business succession—particularly in the face of successor shortages—and the expanding M&A market, using primary data from government agencies, official statistics, and the company’s timely disclosures. Vol.1 (inaugural issue, disclosed on February 13, 2026) focused on the market size of business succession (demand side), while Vol.2 (released March 2026) addressed structural changes in listed company M&A and the rise of PE funds (supply side). This third volume, Vol.3, centers on 'AI × M&A & Business Succession' as a technological factor influencing both supply and demand.

2. Key Contents of This Issue

(1) Emergence of Large-Scale AI-Related M&A: Overview of major AI-driven M&A deals, including SoftBank Group’s acquisition of Ampere Computing (approximately ¥973 billion, announced March 2025) and ABB’s robotics business (approximately ¥818.7 billion, announced October 2025), highlighting AI as a core theme in M&A.

(2) Japan’s Triple AI Divide: Analysis of the international gap in generative AI business usage (55.2% in Japan vs. 90.6% in the U.S. and 95.8% in China), disparities in DX adoption rates by company size (96.1% among large firms vs. 46.8% among firms with fewer than 100 employees), and qualitative differences in DX outcomes.

(3) Mainstreaming of AI in PMI (Post-Merger Integration): Identification of five key areas for AI application in PMI, based on advanced case studies such as Panasonic Connect’s annual reduction of 448,000 working hours through AI.

(4) Shifts in Policy Environment: Examination of policy trends pivoting toward AI, including the abolition of the DX investment promotion tax incentive (March 2025), the launch of the 'Digitalization and AI Introduction Subsidy 2026' (¥340 billion), and the full enforcement of the EU AI Act in August 2026.

(5) WHDC Group’s Practical Initiatives: Compilation of AI-driven value creation post-M&A, including the launch of an AI advanced case study group, the development of an AI-powered water leakage management solution in collaboration with Goodman and Acrodia, and achieving nearly double year-on-year sales and positive adjusted EBITDA in Q1.

3. Distribution

The report will be distributed via the company’s official website (https://twhdc.co.jp) and other channels.

(Disclaimer)

This report and announcement are for informational purposes only and do not constitute an offer or solicitation to acquire securities or investment advice. Forward-looking statements in this report are based on information available at the time of publication and actual results may differ significantly due to changes in economic conditions and other factors. For details on acquisitions (subsidiarization), please refer to the relevant timely disclosures (TDnet).

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Inquiries Regarding This Matter

THE WHY HOW DO COMPANY Inc. (Tokyo Stock Exchange Standard Market, Securities Code: 3823)

3-Yamada Building, Aizumi-cho 22, Shinjuku-ku, Tokyo / TEL (03) 4405-5460 / https://twhdc.co.jp

FACT BOX

  • Source: PR TIMES
  • Category: Survey
  • Organizations: ABB