About Polaris About
Increase of Enterprise Value
Business Model Innovation
There are many Japanese medium-sized companies which have competitive technologies/products/services but are not performing well due to ineffective cost control or inappropriate business structure which are often caused by legacy constraints both external (clients, suppliers, shareholders, etc.) and internal (founders, managements, supervisors, etc.). Others have not yet realized their full potential bound by past “success experience” and stuck with slow growth/low profitability business and unable to allocate appropriate resources for growth.
Polaris applies the Business Model Innovation (BMI) approach to make the company free from these legacy constraints and help them restructure the business and create new value.
BMI is comprised of the three dimensions: (1) Redefine (Redefinition of Value Proposition), (2) Reconnect (Restructuring of Relationships) and (3) Explore (Swift Application of Practical Wisdom) and Polaris endeavors to create value in its investee companies by applying this approach.
Redefine (Redefinition of Value Proposition)＝Identify the fundamental value of the investee, redefine the value proposition for the customer and draw up the growth strategy
Reconnect (Restructuring of Relationships) =Based on the redefined value proposition, sever legacy relationships and build new relationships with clients and partners
Explore (Swift Application of Practical Wisdom) =Apply practical wisdom to day to day operations to create value
Increase of Enterprise Value by Realizing Full Potential of Portfolio Companies
Achieve both Investment Return for the Investors and Mid-term Growth Path for the Portfolio Companies by Trade Sale to Strategic Buyers or IPO in 3 to 5 year from Investment
How Polaris creates value
Polaris works with investee companies to drive growth and value and strengthen corporate governance by implementing appropriate value creation measures given the individual growth profile, management challenges, and corporate culture of investee companies
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Governance
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Support for management team
(appointing CEO/COO/CFO, etc.) -
Streamlining of governance
(review of management meetings and internal codes/rules) - Appointment of outside directors / auditors
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Support for management team
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IPO support
- Equity story for IPO
- Enhancing internal management systems prior to IPO
- Adjustment of ownership structure prior to IPO
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Strategy
- Setting business plan and goals
- Setting ESG goals
- Mid-term business planning
- Support for business strategies and outside resources
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Monitoring
- Budget vs. actual monitoring system
- Timely and accurate financial reporting to enable prompt actions
- Optimizing financial reporting format
- Establishing ESG-related KPIs
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Finance
- Appointing CFO/ finance team
- Refinancing of debts
- Funding of growth capital
- Cash flow control
- Profitability control of investments
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Business support
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Expansion of customer base
(introduction of prospective customers) - Introduction of business partners
- Synergy with other Polaris portfolio companies
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Expansion of customer base
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Organization and HR
- Organization reforms to drive efficient business processes and reporting lines
- Adoption of incentive plans
- Engagement surveys
- Promotion of diversity and inclusion
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Asset control
- Off-balancing of non-performing assets
- Disposal of idle assets
- Reduction of excess inventory
- Sale of subsidiaries
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Operational support
- Operational process improvement
- DX support
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Support for promoting ESG initiatives.
(e.g., GHG emissions measurement support) - Introduction of management resource