Japanese Family Firms Suppress Valuations to Reduce Inheritance Taxes
Toby Rodes · Toby Rodes - Unlocking Value in Japan (EP.407) · Sep 23, 2024 · at 39:11
Toby Rodes, co-founder of Kaname Capital, explains why certain Japanese small-cap companies resist shareholder engagement and maintain depressed valuations.
0:00 / 0:13exact quote · 13.0s
720p mp4 · rendered on demand · StarZero watermark
“Being listed and managing it with cash on the balance sheet is our way of handing the company off to the next generation. And if we can do that at .6 price to book, we save 40 cents on the dollar in terms of the inheritance tax.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Toby Rodes
Japan's Middle Market Is the Largest Pool of Cheap, High-Quality Businesses
“Well, I submit to you today that that biggest pool of high quality businesses on low multiples, great entry points, exists in Japan in the middle markets. It's basically a US private equity playbook that exists for weird quirks of how the Japanese financial sy…”
GPIF Relied on Foreign Investors to Break Domestic Financial Conflicts
“It's GPIF that needs equities to perform to deliver on their pension obligations. So they realized that all of these complex relationships and conflicts in the Japanese financial services market meant that only outsiders could come and constructively cut some …”
1,000 Japanese Public Companies Will Likely Exit Within 10 Years
“And I would say over the next 10 years, a thousand of the 4000 listed companies are likely to be exited in one way or another.”
Kaname Capital Files Derivative Lawsuits Against Boards Over Insider Self-Dealing
“We exercise all of our rights as shareholders. We bring shareholder proposals. We bring derivative lawsuits against the board in cases of obvious self-dealing.”