Ikuo Yasuda is the Chairman, President and CEO of Pinnacle Inc. (IMAP Japan) and is an expert in M&A business in Japan with over 30 years of experience. Mr. Yasuda graduated from Hitotsubashi University in the late 70s and entered the Long-term Credit Bank of Japan (currently Shinsei Bank) where he eventually became a Joint General Manager. After over 20 years at LTCB, Mr. Yasuda was headhunted by General Electric International Japan (GE) where he worked with Jack Welch managing business development and M&A. Mr. Yasuda also served as Country Head of Lehman Brothers Japan and Head of its investment banking department.
Mr. Yasuda says compared to a Japanese company, western companies are very much performance driven. Unlike a Japanese company, age is not a determining factor in their status, as Mr. Yasuda’s boss at GE was younger than him, and there is no seniority system. He adds that management and executive level workers also do much of the front-line work, talking to clients and making presentations. Due to the nature of such a results-driven working environment, Mr. Yasuda says he had to be very strict with his subordinates, yet at the same time, motivate them and allow freedom in how they reached their goals. He took the Ame to muchi (Whip and candy) approach in leadership, learning from his boss who took a similar style. Moreover, as his bosses were superior to him regardless of their age, and had much more decision-making power than Japanese companies, he felt more pressure to produce results. Mr. Yasuda explains that one of the “GE way” was to stretch one’s goals. For example, his team will set a goal of 15% instead of a more realistic 10%, and push themselves to reach over 10% in the end.
After GE, Mr. Yasuda worked at Lehman Brothers as the Country Head of Japan. When Mr. Yasuda joined Lehman, he felt a different kind of pressure from working at GE. As GE’s head of business development, Mr. Yasuda was required to make a series of acquisitions and develop new businesses. As CEO of Lehman Brothers Japan, Mr. Yasuda was hired to rebuild the Japan branch that had decreased and was responsible for producing profitable ROE.
After Lehman, Mr. Yasuda became interested in founding his own business, combining what he had learned from both cultures. As a result, Pinnacle, an M&A advisory firm, was born. When recruiting for people in the firm, Mr. Yasuda was able to receive great PR appearing on the Nikkei newspaper article as well as being a TV commentator on a nationally broadcasted news show on TBS, which prompted many talent people in finance to apply. Moreover, Mr. Yasuda sought to target CEOs of corporations and built up his client base by setting up lunch appointments and golfing. Mr. Yasuda also took full advantage of his business network, being part of many business leader associations, including the Tokyo Rotary Club. He explains, when the M&A research begins from the ground-level and is brought up to the CEO, the executive is more likely to turn it down because of the risk factors written up in the reports provided to him. However, by capturing the CEOs’ interests first, Mr. Yasuda thinks the M&A will most likely be implemented.
As for the future of M&A, Mr. Yasuda thinks more and more companies will be interested in order to increase their ROE. He mentions there is much more that M&A can do with Private Equity Fund and business successions in which companies do not have a successor. Additionally, Mr. Yasuda points out that the country is going through a post-industrial revolution with the rapid-changes due to technology. This will also impact the growth of M&A.
On advice to foreign nationals leading in Japan, Mr. Yasuda says, it is important to understand the Japanese corporate culture, which can be unproductive at times. Secondly, he advises to be patient when doing business in Japan. He further explains, the Japanese market is fiercely competitive, which is something foreigners sent to Japan from headquarters would have to explain continuously. The key to a successful M&A in Japan would also be a gradual process, winning trust from a minority and slowly gaining more ownership.
Mr. Yasuda defines leadership as someone who is the most productive person in the organization and can lead by example. In this way, he thinks one can earn the trust and respect of the team. Moreover, Mr. Yasuda values fairness and treating his employees equally, and being transparent with how they are compensated based on their performance.
