Minebea Mitsumi Inc. Chief Executive Officer Yoshihisa Kainuma is preparing to resume acquisitions once the coronavirus pandemic is done gutting corporate finances and valuations.
The former M&A lawyer, known in Japan as the “king of deals,” told Bloomberg News he’s waiting out the current market turmoil before restarting his acquisitions machine, focusing on distressed companies. Many firms are struggling with the economic uncertainty brought on by Covid-19 and some will fail, Kainuma said in an interview last week. Banks and creditors will soon start assessing the health of firms, presenting opportunities, he added.
“We should slow down and hold off from making any deals right now because the Covid-19 confusion and economic uncertainties have made sound valuations of companies almost impossible,” he said from his offices in Tokyo. “It would all depend on the Covid-19 situation, but if it gets prolonged, we’ll see companies taking a hit from it, and I expect banks would soon start doing triage — you know, which ones to save and which ones not to.”
“That would be the time to carry out the best possible deals,” he said.
25,540 in U.S.Most new cases today
-10% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.029 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
-2.3% Global GDP Tracker (annualized), May