At G-FAS Corporation, we focus on serving in the best interest of the client.

In general, financial due diligence for M&A transactions has been conducted by the audit or transaction service teams of auditing firms. However, after US corporate reform laws were enacted (Sarbanes-Oxley Act), demand for stronger independence from auditing firms as auditors has increased. Although due diligence is not considered a service that violates the independence of auditing firms, as the number of large auditing firms decreases and underlying conflicts of interest continue to exist, an established system that meets the various needs of clients who utilize M&A as a viable strategy is commonly lacking in the Japanese M&A market.

Moreover, as we see a trend towards compulsory IFRS (International Financial Reporting Standards) for Japanese enterprises in the future, the risk of purchased goodwill impairment is expected to rise as the present rule of periodic amortization will soon be prohibited. In order to avoid such impairment, it is important to avoid overpaying the purchase price as well as making sure the accurately valuated goodwill continues to create value while avoiding value deterioration after the purchase. This is key to a successful M&A deal. As such, the importance of the due diligence process is likely to increase substantially, as it allows direct access to target companies during M&A transactions.

G-FAS was established not as an suditing firm, but as an independent team of professionals with a core focus on providing due diligence services for M&A transactions. We aim to create value by responding to the diverse needs of clients wishing to complete a successful M&A transaction, not just by providing a simple one-time solution but offering advice based on the knowledge, experience and know-how of our professionals in M&A transactions. Our independent position free of any affiliation to any keiretsu auditing group allows us to be autonomous from any operational restraints and provide high added-value services. We strongly believe that by utilizing our highly specialized skills and rich experience we can provide highly value-added services in the best interest of our clients.