Deal Lab is a
database-type platform for those involved in industry analysis and asset management, covering market share, candidate companies for M&A, shareholder proposals, strategy reviews, and startups.
DealLab calculates market shares based on sales. Market share in terms of value using sales is an effective and reproducible means of identifying major industry trends and the potential for restructuring.
For example, in the motorcycle industry, Indian motorcycle manufacturers sell more motorcycles than their Western counterparts, but less in terms of value (sales). This is probably due to the fact that Indian manufacturers are selling low-priced bikes to the mass consumers with disposable incomes in the country.
Market share figures vary depending on whether it is by value or volume. There is no correct answer to the market share figure. We believe it is important to infer the background that creates the difference in order to predict future industry restructuring.
Once the structure of the industry is understood based on market share, consideration must be given to which companies will be the target of restructuring. No one knows which companies will be the target of restructuring. The companies to look out for are those owned by private equity. The reason for this is that they are more likely to be sold in the future.
DealLab has compiled an industry-by-industry list of 1,200 companies that are candidates for M&A or restructuring in the industry in the future, along with an analysis of trends in companies acquired by private equity.
There has been a recent increase in the number of shareholder proposals and initiated dialogues with management of publicly traded companies in order to enhance returns. In many cases, shareholder proposals have led to major industry restructuring, as in the case of the corporate divestiture of Hundred Packard Co.
Shareholders request listed companies to sell unprofitable businesses or change their capital structure, increase dividends, or retire treasury stock. Although these dialogues are usually held privately, sometimes an open letter is disclosed by both sides to advance a proxy fight for voting rights at a shareholders’ meeting.
The DealLab analyzed individual cases to determine the impact on corporate value of the shareholder’s rejection of the request, the granting of the request, and when these dialogues spanned multiple fiscal years.
A strategic review is an active reorganization of a company’s business structure in search of further growth. In an industry with little growth potential and an oligopolistic market structure, how much management resources should be devoted to a business that is at the bottom of the industry? Potential management issues vary from company to company. In the case of Western companies, the strategic review may be announced not at the time the decision to sell the business is made, but at the time the company begins considering the sale of the business. For example, the Suez stake that Enegy sold to Veolia is a good example. The combination of the two water barons, which everyone thought was unlikely a few years ago due to historical circumstances, happened because Engie published its strategic review. DealLab analyzes strategic reviews based on publicly available information.
If it is the strategic review that spontaneously updates the business structure, and shareholder dialogue is done through external pressure, then startups are the ones who redefine the ecosystem of the industry.
Each round of investment by a startup transforms the industry at a speed that would not be possible for a normal company. A good example is the iPhone created by Steve Jobs’ Apple, which accelerated the growth of the smartphone market 20 years ago and is now indispensable throughout the world.
And is the now emerging app-based food delivery for food intermediaries in the transportation industry? Is it the retail industry? Is it the distribution industry? No. It is a food delivery industry with the potential to grow into a $300+ billion market by 2030.
The emergence of start-ups has great potential to lead not to a reorganization “within” the industry, but to a reorganization of the industry itself.
This site is unique in that it analyzes industry and global industry restructuring trends from the perspective of both micro factors, such as individual company strategies and business models, and macro factors, such as industry structure, external environment, and redefinition of the industry itself.
In order to provide as many people as possible with a quick and easy bird’s-eye view of the industry structure at a glance, we have carefully selected only the essential information and tried to present it in a concise and concise manner.
Our goal is to provide information that will catch the reader’s attention, even if only a little, as to how Japanese companies are positioned in the global competition, and how overseas players are moving in this way.
If you would like additional case studies or industry analysis,
Please contact us through the “Contact Us” page.
