Investment strategy
Strategy
About strategy
Value Quest Partners aims to realize the better society through value-up of small and medium-sized enterprises (SMEs) which we believe are the backbones of Japanese economy. The members of Value Quest Partners have had numerous dialogues with management teams of various companies where we utilized our strengths as analysts such as ability to find potential value, ability to accompany management teams to realize the potential value and ability to forecast earnings outlook/industry trend. Based on our experience of such dialogues, we believe SMEs are able to create values in the most effective ways through the following methodologies:
Redefinition of their strengths
Visualization of their earnings structure
Reconsideration of their business strategies
Improvement of their productivity through settings of appropriate operational/administrative rules
We believe our methodologies are most effective for SMEs with EBITDA of ~JPY500MM (normalized level at the time of our investment). Within such companies, our targets are as follows:
Companies which are willing to brush up competitive strengths to prepare for the future industry reorganization
Companies which have expanded the number of products/customers too much and willing to simplify the complicated operations/earnings structure
Companies which have grown on the back of founders’ strong leadership but willing to change the organization structure to aim for sustainable growth
Companies with diverse shareholder base which are willing to change the structure