"Separation of Ownership and Management" to Ensure the Company's Longevity
On the SME Support Japan website, our company was featured as an example for "Smooth and Friendly M&A for Business Succession" of a growth fund for small and medium-sized enterprises. This recognition celebrates our efforts to secure the company's future through a strategic business and capital alliance between Sakura Seiyu Co., Ltd. and Yashima Holdings Co., Ltd., which is based on the principle of "separating company ownership and management" to resolve succession issues and ensure the company's continued existence.
To ensure the company's long-term survival, CEO Kawaguchi did not want to hold shares himself, but rather wanted the shares to be owned by a business entity that was expected to have future development and growth. With the business succession now complete, Sakura Seiyusho Co., Ltd. will continue to develop at an even faster pace. Our expanded operations will also strengthen our employment system, contributing to society.
The Decision to Utilize a Fund
By a stroke of good fortune, we were able to partner with New Frontier Japan Investment Co., Ltd. a fund managed by Koichi Sakurada, who previously served as a managing director at the Enterprise Turnaround Initiative Corporation of Japan and played a key role in the revitalization of JAL. Through this partnership, we were able to upgrade our administrative departments and become a member of the Yashima Holdings group. While under the umbrella of the holding company, we are currently pursuing M&A for a Malaysian company.
First, Strengthening the Foundation
Upon receiving support from the fund, we first focused on strengthening our company's business foundation. Our initial efforts included:
- Stabilizing operations by improving labor management.
- Outsourcing financial management.
- Improving efficiency through the introduction of new systems.
Next, introduction of machinery to strengthen quality control
- Additional lubricating motor oil testing equipment.
- Introduction of a circulation heater.
The introduction of these machines not only further improved our product quality but also successfully led to a reduction in costs.
Future Business Development
We formed a business and capital alliance with Yashima Holdings Co., Ltd. in May 2021.
By partnering with Yashima Holdings, a fellow Osaka-based automotive company, we expect to generate significant synergy and achieve substantial business growth.
Development through Environmentally Conscious Research
Our joint research with Doshisha University over five years has successfully resulted in the development of a CPU cooling device that uses magnetic fluid. This device can locally cool a CPU without an external power source by using electromagnetic induction in a magnetic field to magnetize a chemically synthesized motor oil.
A patent for this technology has already been filed, and we expect this alliance with Yashima Holdings Co., Ltd. to lead to further business expansion.