External Growth

External growth

Howtelevision, Inc. develops a variety of services in-house, but to achieve further growth, we are also actively pursuing external growth, such as M&A and business alliances.

Howtelevision's Business Strategy

Howtelevision's business portfolio — a map showing the strategic positions of the knowledge-sharing platform mond, the LIFE platform Roglio, GaishiShukatsu.com, and Gaishi Shukatsu NEXT, on two axes: profitability (Operating Income margin) and growth (Revenue, ARR, LTV, etc.).

Howtelevision operates and develops various platforms.

Platforms are broadly divided into the LIFE Platform (which includes recruitment support services, leverages the member base of GaishiShukatsu.com, and provides services throughout the user's LIFE stages) and the Knowledge Sharing Platform (a completely new CtoC communication platform centered around mond).

Howtelevision is pursuing M&A and alliance strategies along three axes—HR, lifestyle, and technology—with the aim of expanding its service lineup and acquiring technological advancement.

When considering,

Potential for higher growth than existing businesses
Maintaining a certain level of profitability (to ensure alignment with shareholder expectations for profit as a listed company).
Businesses with potential for synergy with the Howtelevision Group

We are proceeding with the sourcing and consideration of projects, taking into account...

Investment Guide (Quantitative Criteria)

Target	Companies and businesses that meet the candidate selection criteria
Amount	EV/EBITDA multiple of 10x or less as a guide ※ If EBITDA is negative, the investment amount is capped at 500 million yen.
Financial Results	EBITDA positive in principle Without incurring goodwill impairment, and ideally, contributing to profit. * An EBITDA loss may also be acceptable depending on the magnitude of anticipated synergies.
Source of funds	In principle, cash and deposits and borrowings from financial institutions Depending on the amount, a capital scheme may also be considered.

Selection Criteria for M&A and Alliance Candidates

Three Key Sourcing Areas

	HR Domain	Lifestyle sector	Technology Domain
Overview	Companies with services that are cross-sellable to our client companies Companies that are strategically important for the expansion of our HR business, either by possessing key client companies and users or by covering relevant service areas.	A company that provides added value, such as skill development and lifestyle enhancement, to our user base through online services. Alternatively, companies with services that can contribute to an increase in our user base and enhanced loyalty.	A company with technical expertise that contributes to the expansion of our products, and products that leverage advanced technology.
Examples	Human Resources Consulting RPO (Recruitment Process Outsourcing), ATS (Applicant Tracking System), aptitude tests, and other HR and recruitment-related services Support for side jobs and contract work Recruitment service for high-end talent Online platform in the following areas New graduate and mid-career recruitment specializing in venture companies, IT engineer positions, and science/engineering roles. IT Engineer Long-term Internship Self-Employment & Entrepreneurship	Online platform in the following areas Skill development platform e.g., language learning, studying abroad at overseas universities/graduate schools, and business schools for working professionals Matching service for high-income individuals, e.g., romance and marriage for high-caliber professionals Wealth Management e.g., asset building through financial products, real estate, etc. Childcare, Early Childhood Education, and Entrance Exam Preparation for Kindergarten, Elementary, and Junior High School Hobbies such as travel and sports, and leisure activities such as villas	Products and other technologies with features leveraging the following technologies. Enhancement of Matching Accuracy Enhancement of Recommendations Cybersecurity Utilization of Generative AI Companies offering development experience to aspiring engineers IT Staffing / Contract Development Company Coding Exam Preparation Competitive Programming

If you are considering a business alliance or joining the Howtelevision Group, please feel free to contact us.