We were talking about M&A deal, the similarity with sex and Aikido.
Inamori* shared his story of how he successfully completed the M&A deal with AVX, a US based electric manufacturing company. Superficially, people think that thorough due diligence, hard negotiations, and precise financial analysis are keys to succeed in M&A deals.
However, what Inamori said as the fundamental nature of M&A is rather the rules of the universe: two existences are united to create a new life. This is a theme of our lives: having sex between two genders. This can also be interpreted as the fundamental value of Aikido: your enemy and you have been united in a universe to create harmony.
Therefore, while referring the M&A tips, I would like to share with you how other two themes, sex and Aikido have been associated with the success of M&A deal.
The tips of M&A deals are as follows:
1 Spotlighting in shadow
2 With a view of universe
3 Just feeling your partner
4 Bringing Positive energy circulation
5 Where the pleasure comes from
６ Going straight, right and the center of the way
7 Remaining humble and making others the hero
8 Ultimate objective of M&A
This time from 5-8 will be explained.
5 Where the pleasure comes from
In exchanging the shares, Chairman Butler asked to assess AVX share price 50% above the market. Inamori immediately agreed to that price. This is not because of Inamori’s boldness. On the site inspections, he had always calculated the financial indications of both AVX and Kyocera, which means all the per share benchmarks. Inamori finally had in his mind a sort of threshold, by which Kyocera can maintain the profit. I personally feel that Inamori found out the fundamental value of AVX was people, human resources. Inamori also found the stock price had not been reflected properly. Therefore, he noticed the value driven by people and targeted to maximize that value after the M&A.
In sex, we should figure out how and where the pleasure comes from your partner and all we have to do is maximize that pleasure to our partner.
In Aikido, we spontaneously feel where the energy comes from, concentrating that energy, and float to back our counterpart as an energy stream.
6 Going straight, right and the center of the way
Technically, the Ministry of Legal Affairs in Japan did not approve the proposed method of mutual shareholding. Inamori advised lawyers to convince the authorities by demonstrating our arguments: we are trying to do the right approach to maintain a good relationship between two countries. Finally, the authority approved the method under certain conditions. This demonstrates that as long as we are going to create harmony, we should convince counterparts by explaining that value. I learned that in negotiation, we should feel the worries and concerns of our counterpart, and then demonstrate approaches by which we can reduce their anxiety and to bring our partner. This can also be applied to having sex and Aikido.
7 Remaining humble and making others the hero
Kyocera, at the end of the day, accepted other conditions, which looked disadvantageous to Kyocera. Therefore, Chairman Butler was really happy and he had been respected by security companies as the most capable negotiator in M&A. We all know who the actual hero is but remaining humble to create harmony is the most beautiful virtue in our world. Such virtue has been found beautiful in our actions to express our affections. Aikido’s key point in its practice has always been the same, how to make others comfortable.
8 Ultimate objective of M&A
Inamori : M&A deals are always very expensive. So, both sides have been working for a long time on due diligence and negotiations in terms and conditions, only for seeking the best condition for the seller/ buyer side. Most of the terms, both sides have been forced to compromise to accept unfavorable conditions. After spending a long time, they achieved agreement but both sides got exhausted and filled with untrust as well as hostility towards the counterpart. Therefore, all the M&A deals end up unsuccessful. From the starting point of a new company, there is no more harmony remaining.
Thus, gentlemen, all we must keep in our mind in M&A is love and harmony, indeed. Nothing else is required. Otherwise, we would never be able to create a good relationship with anybody.
This golden rule exactly can be applied to having a good sex with our partner. Also this is the fundamental value of Aikido. If we have any hostile intention towards our counterpart, Aikido never gets completed.
Therefore, the following tips are the keys to lead M&A to success.
1 Spotlighting in shadow
2 With a view of universe
3 Just feel your partner
4 Positive energy circulation
5 Where the pleasure comes from
６ Going straight, right and the center of the way
7 Remaining humble and making others the hero
8 Ultimate objective of M&A
In order for us to conduct the above good practices, we should understand the concept of love, sincerity (altruism) and harmony. We should deliver all those values in our daily lives.
Further queries or doubts, please email to ytomizuka@abrilsjp.com
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