Taking on the challenge of commercializing the world's first clone matching technology in M&A for small and medium-sized enterprises

TOKYO, JAPAN, January 13, 2025 /EINPresswire.com/ -- alt Inc. (https://alt.ai/en/, head office: Minato-ku, Tokyo; CEO: Kazutaka Yonekura), is pleased to announce the launch of a PoC (proof of concept) for CloneM&A, an M&A matching system that utilizes AI clone technology. The PoC was created in collaboration with Nihon M&A Center Inc. (head office: Chiyoda-ku, Tokyo; CEO: Naoki Takeuchi), Japan's largest M&A intermediary company.

※ World's first: As of January 8, 2025, based on in-house research. Practical application of clone matching technology using generative AI and LLM in M&A.


■Background of PoC
In recent years, the issue of business succession due to the aging of business owners has become a major social issue. In particular, there are over 600,000 companies across Japan that are at risk of going out of business, regardless of profitability, due to a lack of successors; approximately 200,000 of these companies are considered to be in imminent risk of collapse. Critically, many of these companies’ executives are over 70 years old. Assuming that it takes about five years to transition leadership in a business, 40,000 M&As will be required per year to ensure the survival of 200,000 companies. However, as of 2024, the number of M&A deals concluded per year was only about 4,000.※
※ As of January 8, 2025, based on in-house research.

Although the number of M&A intermediary businesses in Japan has more than tripled since 2020, the average number of successful deals per M&A advisor per year is approximately 1, and the success rate remains low at about 20%.※ In other words, many companies are left with nowhere to go while facing the challenge of business succession. To overcome this situation, a new solution that breaks down traditional M&A and significantly improves the success rate is essential.
※ As of January 8, 2025, based on in-house research.


■Social significance of PoC
This PoC is aimed at solving the structural issues facing the M&A industry and creating a social impact. By combining the extensive knowledge that Nihon M&A Center has cultivated over the years with alt's innovative AI clone technology, we’re opening up new possibilities in the M&A field.

Specifically, we will build a prototype of CloneM&A that meets the business characteristics and needs of Nihon M&A Center, and use tests data to verify its matching accuracy and practicality. We also hope to show how CloneM&A can contribute to actual business operations based on expert and practical feedback from Nihon M&A Center.

In November 2024, we announced the world's first M&A transaction using AI clone technology, achieving results that far surpassed conventional methods in terms of matching and speed of closing. Through this PoC, we aim to demonstrate the effectiveness of clone matching technology in the M&A field and solve the increasingly serious problem of business succession.

(Reference)
alt.ai announces world-first AI-matched M&A using CloneM&A
Supporting Relo Create's M&A with clone matching technology that allows AI clones of companies to meet with each other in virtual interviews
https://alt.ai/en/news/5691/


■About CloneM&A
CloneM&A is an AI matching system that uses a large language model to generate a clone of the seller company and have it virtually meet with thousands of buyer company clones in a database. CloneM&A calculates matching scores and synergies with all potential buyer companies, searching for the optimal candidate.

CloneM&A utilizes alt's proven clone generation technology to thoroughly learn all of a company’s data, including voice recordings and business documents. This helps it achieve a significantly higher average matching accuracy than conventional keyword matching, which is based on personal preference. In tests, the service was highly evaluated for its high level of confidentiality in the matching process and its ability to provide a satisfactory search for buyer companies from the early stages of M&A consideration. Moreover, CloneM&A’s results (application rate, matching rate, and closing rate) have far exceeded the M&A industry average. CloneM&A is scheduled for public release in January 2025.

CloneM&A introduction video: https://youtu.be/I2NpDu02EjY


Starting with CloneM&A, alt will leverage the power of AI to solve all issues in the M&A field. Utilizing our many years of experience and track record with artificial intelligence, we will strive to make a difference on Japan’s most pressing social issues.


■About Nihon M&A Center Holdings Inc.
Company name: Nihon M&A Center Holdings Inc. (TSE Prime: 2127)
Headquarters location: 24F TEKKO BUILDING 1-8-2, Marunouchi, Chiyoda-ku, Tokyo, Japan
Description of business: M&A support services for SMEs (reorganization, capital policies, MBO, etc.)
Established: April 1991
Locations: Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, Hiroshima, Okinawa, Singapore, Indonesia, Vietnam, Malaysia, Thailand (including local subsidiaries and the offices of our consolidated subsidiary, Nihon M&A Center)


■About Nihon M&A Center Inc.
As a leading company in the M&A intermediation industry, Nihon M&A Center Inc. has a corporate mission of "contributing to the survival and development of companies through M&A work," having supported more than 9,000 M&A transactions since its founding. Nihon M&A Center is also deepening its ties with accounting firms, regional financial institutions, megabanks, and securities companies, accelerating the creation of consultation opportunities regarding business succession and M&A, and offering stronger matches. Nihon M&A Center has seven locations in Japan, 17 satellite offices, and five locations overseas, including a local subsidiary of Nihon M&A Center Holdings.


■About alt Inc.
Founded in November 2014, alt is a company that "aims to free people from unproductive labor" by creating "P.A.I." (Personal Artificial Intelligence) and AI clones. In addition to AI GIJIROKU, a communication intelligence that utilizes speech recognition technology born from the development of an AI dialogue engine, we also develop and provide products, such as altBRAIN, CLONEdev, and altTalk, that provide solutions to various business issues through PoC (Proof of Concept).
https://alt.ai/en/


Masataka Inoue (New Business Development Depart
e-mail: clonema@alt.ai

Misako Nishizawa
alt Inc.
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