Entrepreneur Toshiyuki Sugiura reinvested all of the proceeds from the sale of Squad Inc. (hereinafter "Squad") and formed the industry-specific software group SIVA Inc.
(hereinafter "SIVA") in collaboration with JGIA. SIVA executed M&A transactions totaling over 10 billion yen in its first year, and is making progress toward establishing a new role model for growth in Japan through self-funded start-ups, co-creation with funds, business succession, and regrowth.
Finance Produce Inc. (hereinafter "Finance Produce" or "our company") served as Squad's financial advisor (sell-side FA) and supported this "startup M&A" as a new growth model in Japan.
Squad was founded as a solid venture using only its own funds , and has successfully achieved the difficult feat of rapidly growing its SaaS business at a rate comparable to or faster than other fast-growing startups that have received large amounts of VC funding , while also achieving profitability and growing MRR for over 60 months in a row , growing the company to a scale where a standalone IPO is within reach .
However, the company has chosen M&A over an early IPO , and is considering selling part of its shares to a PE fund while acquiring greater capital and strategic partners, with the aim of further accelerating growth and pursuing a large-scale IPO .
To put it simply, from the day SaaS entrepreneurs sold their companies as sellers, they began to acquire other SaaS and other software companies as buyers .
What's surprising is that the entrepreneurs are reinvesting all of the proceeds from the sale, and that in the first year of partnering with the PE fund they have already acquired multiple SaaS and other software companies, bringing the total amount to over 10 billion yen .
Finance Produce is pleased that SIVA has executed a startup M&A as a new growth model for further business growth and advanced to the next stage of growth. We are confident that together with JGIA, we will achieve our
mission of "transforming industry-specific software companies into sustainable growth companies through M&A and modernization, and empowering customers and employees across all industries through this transformation," and will increase the business value of both companies. We will continue to
work hard, producing results that meet the trust and expectations of ambitious entrepreneurs and investors, as well as listed companies and large corporations, both in Japan and overseas.
(Reference)
SIVA (including Squad) press release
and announcement regarding this matter・Announcement regarding acquisition:
SIVA, an industry-specific software group, has acquired "menu magazine," led by former Wegmans and Vita Coco Japan representative Yoshino.