The Allen & Overy Podcast

APAC M&A Insights: Japan’s shifting attitudes change M&A market dynamics

November 12, 2021

Driven by changing attitudes and economic priorities, Japan remains a powerful outbound investor and is becoming an increasingly popular destination for inbound transactions. Despite economic, social and political uncertainties, Japanese investment into the U.S., increasingly in the technology sector, is thriving. In this short podcast, our partners discuss the following key topics:

  • The diversification of Japanese investments in the U.S., from the traditional manufacturing sector, into the technology and green energy spaces.
  • How earn-outs are structured and why this makes a deal more attractive for both the Japanese buyer and the U.S. counterpart, but be warned – earn-outs are not without their risks and complications!
  • How the Biden administration has affected the regulatory hurdles facing Japanese investors. Jumping these hurdles can be a time consuming task and Japanese companies must factor this in to their timelines.  Over the past year, over 300 transactions, particularly in the computer manufacturing and software development spaces, were subject to CFIUS.  The CFIUS risk profile of a target should be carefully considered by Japanese investors. 
    The podcast is moderated by Japan based partner Nick Wall, with discussion from New York based Dario de Martino and Japan based Tokutaka Ito

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