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A startup in Japan offers aging CEOs a worry-free succession plan

Founded in 2018 by a group of bankers and consultants with little exposure to the factory floor, NGTG's revenue has grown from zero to 8 billion yen ($59 million)

Arai, second from left, during a management meeting at Toshima Manufacturing. NGTG has bought six companies and plans to buy three to five more in two years. (Photo: Bloomberg)
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Eiichi Arai, second from left, during a management meeting at Toshima Manufacturing. NGTG has bought six companies and plans to buy three to five more in two years. (Photo: Bloomberg)

Takashi Mochizuki and Yuki Furukawa | Bloomberg
Like most aging chief executives in Japan, Sadatsugu Kishida had a list of demands before handing over the reins of his company.
 
“No job cuts. No company name change. You must understand and inherit my philosophy in serving customers,” the 77-year-old said. Having dictated every single decision at Kyowa Seiko for four decades, Kishida said he couldn’t think of anyone who could take over his 30-person metal-processing business on the outskirts of Osaka. Private equity funds would resell the company, outside executives would prioritize their own firms, and his employees and family were not ready, he said.

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First Published: Aug 30 2022 | 8:51 AM IST

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