Senior Consultant Sem Led His First Workshop in Malaysia: Understanding the Fundamentals of M&A

Nihon M&A Center Malaysia was honored to be invited by Vistage Group Malaysia to conduct a 3-hour workshop for one of their member groups on 26 August 2025. Vistage Group is one of the world’s largest CEO coaching and peer advisory organizations for SMEs, with a mission to help business owners, CEOs, and key executives to tackle the business challenges faced by providing resources, coaching, and advisory support. For over 68 years, they have already supported 45,000 members across 40 countries, including the US, Europe, China, Vietnam, Singapore, Thailand, Malaysia, and more. Each Vistage peer advisory group consists of 12 to 16 CEOs or business leaders from non-competing industries, creating a confidential environment to exchange ideas, troubleshoot issues, and identify blind spots.

The session, led by our Senior Consultant in Malaysia, Law Sem Liang, was hosted at the office of APEX Furniture. Titled “Unlock and Unleash the Value of Your Business,” the workshop brought together 11 SME business owners and key decision makers to explore how mergers and acquisitions (M&A) can serve as a practical tool for long-term growth.

Before we delve in…

For many, M&A is still seen as something that only happens among large corporations, while SMEs which make up nearly 98% of Malaysia’s economy often look at initial public offering (IPOs) as the natural next step. IPOs certainly remain an important option, but they are not the only path. In recent years, M&A has started to gain prominence among SMEs, particularly as a solution for succession planning when the next generation may not be ready to take over yet. At the same time, M&A also opens doors for SMEs to accelerate growth, diversify, and strengthen their regional competitiveness. The challenge, however, is that awareness and understanding of M&A among business owners is still relatively low. That is why we always appreciate workshops opportunities like this - creating a space to share knowledge, exchange perspectives, and show how M&A can be a powerful option for SMEs, backed by Nihon M&A Center’s experience and Japanese best practices.

The workshop was structured into four key components, giving members a step-by-step view of how M&A can apply to their businesses.

To kick things off, Sem started with a short introduction of Nihon M&A Center Malaysia, sharing who we are and the work we do in supporting SMEs, especially in cross-border deals between Japan and Malaysia. He then moved into an overview of the broader M&A trends between the two countries, mentioning how Japanese companies are increasingly looking toward Southeast Asia as part of their expansion strategy. To make the discussion more relatable, Sem also highlighted well-known Malaysian brands that have previously engaged in successful M&A deals with Japanese buyers, giving members a real sense of how such collaborations materialize.

Once the context was set, Sem moved on to the fundamentals of M&A. He explained what M&A really means and how it ties into the life cycle of a company. Using the idea of organic versus inorganic growth, he briefly showcased how businesses evolve over time and why it is important for SMEs to think about their growth strategies before reaching a critical turning point. This was followed by a comparison of the two main routes business owners usually consider which are IPOs and M&A, with Sem breaking down the differences and outlining how each option can serve different business objectives.

From there, Sem dived into the key challenges Malaysian SMEs are facing today. Issues such as succession planning, workforce upskilling, limited access to growth capital, and rising competition were highlighted, and many in the room could personally relate to these challenges. Sem also emphasized how Japanese companies, with their strong appetite for investing in Malaysia, could step in as valuable partners - not just bringing in capital, but also technological expertise, networks, and access to new markets. Most importantly, M&A can provide a path forward for SME owners looking to retire without a successor, ensuring business continuity and long-term growth.

Before introducing the common valuation methods used in M&A, Sem first walked members through an overview of the M&A process - from the initial introductory meeting to matchmaking, and from due diligence all the way to completion - while also giving a sense of how long each stage typically takes.

He then introduced the three common valuation methods: the Cost/Asset-based Approach, the Market Approach (EBITDA), and the Income Approach. To make it easier for members to get the idea, Sem took the time to guide them step by step through how each method is calculated. This hands-on approach has actually helped the group better understand not only how businesses are usually assessed, but also what steps SMEs can take to further strengthen their positioning in the eyes of potential investors. Surprisingly, this was one of the most engaging parts of the workshop, with members actively working through the calculations together with Sem. Many of them also commented that the exercise made the concept of valuation much clearer and easier to understand.

To put the concepts into context, Sem presented a live case study and invited members to share their views on the scenario. The discussion was lively, with members exchanging perspectives on the company’s challenges, opportunities, and valuation. Several members also asked Sem questions such as what might happened under different circumstances, prompting deeper discussion. This interactive exchange not only deepened their understanding but also made the concepts more relatable allowing them to connect the learnings with their own business realities.

The workshop ended on a high note, with members walking away not only with a clearer understanding of M&A, but also with practical insights they could apply to their own business strategy plan. From fundamentals to valuation, from real-life case studies to cross-border opportunities, the session highlighted how M&A is no longer just for large corporations, but an increasingly relevant tool for SMEs in Malaysia. Many members also shared that the session gave them fresh ideas on how to think about their own next steps.

At Nihon M&A Center Malaysia, we always return to our roots which is the belief that businesses should continue and prosper. That is why we see M&A beyond just as a transaction, but as a bridge to the future whether it is by supporting succession, unlocking growth opportunities, or finding the right partners to carry businesses into the next chapter.

We look forward to more opportunities to share, connect, and support companies in Malaysia. Contact Us if you are an SME owner and would like to explore further on how M&A could fit into your business plans.