Many companies lack vital decision-making
capabilities because they are late in compiling monthly
trial balances. Other companies cannot make investment decisions
for the future because they cannot manage the profit and
loss accounts of each segment (business or product domain)
clearly. The Tokyo Sogo Management Advisory Group uses its
leading expertise in work sharing, defining specific roles
for business segments, and management accounting to provide
the internal control structure for managers to make effective
and lasting decisions.
Although corporate spin-offs have
become increasingly common, they often present obstacles
for companies. Some companies have numerous subsidiaries
through crossholding shares. Other companies sense that
past experiences have soured shareholder relations or are
concerned about how to manage employee shareholder associations
in the future. The Group applies its expertise in tax, legal,
and financial matters to devise effective policies for capital
relationships and provide support to management so companies
can safely implement strategies and achieve further growth.
Companies have to compile and account for more extensive financial data on their subsidiaries now that quarterly disclosure has become a more common practice and the scope of disclosure has expanded. However, restructuring has limited CFOs in their ability to hire personnel to take on these tasks. The Group provides outsourcing services during busy accounting periods, enabling companies to handle larger workloads without hiring more internal accounting staff. These network outsourcing services are available not just in Japan but to subsidiaries and affiliates of companies overseas as well.
For companies considering M&A or alliances with business partners, a thorough understanding of a targeted firm's financial standing is imperative. The Group investigates the financial condition of prospective partners and advises its clients on how to proceed.
The managements of many companies face problems in dealing with IPOs. Some have vague hopes for success, some are interested in gaining the services of accounting firms and similar experts, and others have already received preliminary audits but need problems resolved and have doubts about accounting reports. The Group does not offer typical consulting services for IPOs, rather it works to ensure that management and employees are truly satisfied with the results. We are not driven to forcibly overcome obstacles and bring IPOs to their conclusion at any cost. Instead, we advise companies on the best way to achieve soft landings for the benefit of all concerned parties.
Some managements believe their companies will not be able to survive unless they move operations to Southeast Asia or China. Others are saddled with difficulties from unsuccessful past investments in Europe and the United States. In short, many managements face problems in dealing with overseas businesses, and solving them is no easy task. The Group provides backup solutions to help them.
Some managements want to pursue new business opportunities and reverse their disappointing track records under slow economic conditions. However, their capital is often insufficient for investment needs, and they cannot raise funds from financial institutions. The Group's business consultants analyze the climate for entering new business fields, formulate business plans, and help clients gain the understanding of banks for receiving loans. If necessary, we advise clients on how to win grants from the government under the Law on Supporting Business Innovation of Small and Medium Enterprises and through other means.
When managements consider handing over their business to successors, they always have asked themselves how and if advice for succession schemes from financial institutions really suits their needs. However, the right ways vary depending on the times. The Group has built up a wealth of expertise in this area over nearly 40 years and advises clients on the most effective inheritance and succession measures in these deflationary times.