Investing your resources in Japan

What we have done

Support investment strategy for a public financial service company

One of the most successful examples we have done is to support investment strategy for a stock-listed financial service company located in outside of Japan.

One of the biggest and rapidly growing senior markets in Japan is senior housing market. Significant numbers of financial companies from outside of Japan have acquired Japanese properties such as paid nursing homes.

Are the properties you acquired or you are acquiring really good ones?

However, we cannot help warning “Are the properties you acquired or you are acquiring really good ones?” The financial statement of the properties shows the financial aspects only. It does not always reflect the operational performance of the properties.

Even when you judged that your acquisitions are reasonable, there are risks of declining the financial performance due to the operational matters. You must understand deeply potential risks due to the operation of the properties if your business depends on the revenue from your properties.

Potential risks of nursing homes in Japan

There are following three potential risks of nursing homes in Japan.

  1. Institutional risk
  2. Financial risk
  3. Operational risk

The revenue of nursing home in Japan highly depends on the revenue from payoff of PLTCI(Public Long-Term Care Insurance). In typical case, more than 50% of revenue of nursing home is from payoff of PLTCI. This means that the revenue of nursing home can be easily affected by the change of government policy on PLTCI.

Increasing labor cost due to the higher labor turnover rate is potential financial risk. Decreasing revenue from PLTCI due to the mismanagement of Required Care Level (RCL) setting is another.

Decreasing entry fee entrusted due to the longer lifetime of residents is also another near future potential risk. Increasing repair cost due to longer operation years must be considered by operators.

To reduce those risks, you need professional advisory with much knowledge on policy, regulation, properties, operation, and key persons in Japan.

What we can provide for you 

To minimize the risks and to increase the value of the properties, we can support you by the following three tasks.

  1. Japanese local knowledge transfer
  2. Acquisition advisory
  3. Properties brokerage
  4. Finding potential partners and supporting alliance building
  5. Providing continued critical business advice
  6. More tasks necessary