Daiwa Targets ¥100 Billion in M&A Revenue by 2031

Daiwa Securities, a prominent player in Japan’s financial sector, has announced an ambitious plan to generate 100 billion yen (approximately $635.61 million) in revenue from mergers and acquisitions (M&A) by the financial year ending in March 2031. This new target reflects a significant increase from the company’s previous goal of 70 billion yen, amidst a surge in M&A activities in Japan that approached record levels in the past year.

The announcement comes as the total value of M&A deals in Japan reached around $319 billion for the year ending December 17, 2025. This figure positions Japan as a leading market for mergers and acquisitions, second only to the $343 billion recorded in 2018, according to data from LSEG. As the country emerges from a prolonged period of deflation, Japanese companies are increasingly looking to enhance returns on their assets, leading to a growing appetite for acquisitions, particularly in international markets.

Strategic Moves and Market Dynamics

In a recent interview with Reuters, Akihiko Ogino, CEO of Daiwa, emphasized the evolving landscape of corporate governance in Japan, which has rekindled interest from global investors. This shift has catalyzed an uptick in private equity transactions and prompted a rise in activist investor engagement within Japanese firms. “Tokyo will become the starting point for cross-border M&A,” Ogino stated, highlighting the potential for Japan to play a pivotal role in international deal-making.

In a strategic response to this growing momentum, Daiwa established a dedicated team in Tokyo earlier this year to streamline its operations across various countries. Currently, this team comprises six members, with plans for expansion as the firm aims to enhance its M&A capabilities. The company has been actively recruiting for its M&A division, with current staffing numbers at around 640 employees and a target of reaching 900 by the end of March 2031.

The ongoing recruitment efforts have impacted Daiwa’s M&A-related profits, despite revenues hitting a record high of 59 billion yen for the year ending in March 2025. Ogino noted, “We’re now entering the harvest phase,” suggesting that the firm is poised to capitalize on its investments and strategic initiatives. He added, “Japanese firms are at the stage of having to make bolder decisions than ever before,” indicating a transformative period for the industry.

Daiwa’s commitment to increasing its M&A revenue is a clear response to the dynamic market environment in Japan, where companies are seizing the opportunity to pursue growth through strategic acquisitions. The firm’s focus on bolstering its M&A operations positions it well to navigate the evolving landscape of corporate partnerships and investments in the years to come.