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    • Introduction / Professional
    • 2026/06/26 (Fri)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    "Making the Acquisition" Is Just the Starting Point—The True Nature of the "Innovation Death" That Japanese Companies Keep Repeating in U.S. Startup M&A

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    Many Japanese companies that acquire U.S. startups find themselves asking the same question 18 months after closing: “Why did the founder leave?” The answer lies in what began on the very day of the acquisition.

    Why Do 70–75% of M&A Deals Fail?

    Fortune magazine published some shocking data in 2024.

    An analysis of 40,000 M&A deals over the past 40 years ・ revealed that 70–75% of them failed. An even more surprising finding is that the stock of the “acquired company” outperformed that of the acquiring company by 20–25% three years later.

    In other words, the “losing side” in M&A often does a better job of protecting shareholder value.

    What does this mean? It’s not a matter of the acquisition price. Insufficient investment in the post-acquisition strategy—the PMI （ integration process ）—is turning M&A into a value-destruction machine.

    Acquisitions of U.S. startups lay this problem bare in an extreme way. This is because much of a startup’s value resides in “people”—the founders and a small number of brilliant engineers.

    What is happening is “subjugation” masquerading as “integration.”

    Key Message ： For startups, the management systems of large corporations are not life support—they are poison gas.

    Let’s look at a typical scenario of what happens immediately after a Japanese conglomerate acquires a startup.

    First, the “standardization of expense reimbursement workflows” begins. Next, “monthly KPI report templates” are handed down from headquarters. You’re required to align performance evaluations with “group standards.” Business trips now require approval following strict procedures.

    These are standard management practices for a large corporation. However, the founders see a completely different picture.

    “Do I really need approval from five people just to buy 30,000 yen worth of experimental parts?” “We’re running weekly sprints, yet we’re being told to prepare a monthly report template.” “This used to be my company, but now I’m just someone’s subordinate.”

    A startup’s competitive advantage lies in speed and rapid experimentation cycles. The more people involved in decision-making, the more that speed drops exponentially.

    Six months later, the first key engineer quits, and a chain reaction follows. Twelve months later, the founder leaves, saying, “I can’t do what I want to do.” Eighteen months later, all that remains are “the remnants of what used to be a startup.”

    Learning from Real-Life Examples ： What Happened—The “Symbol of Destruction” and “Model of Rebirth”

    Key Message ： A company that paid 600 billion yen in tuition versus a company that acquired innovation for $500 million—the difference lay in the depth of their strategy.

    NTT Communications × Verio （ 2000 ）

    In August 2000, NTT Communications invested 600 billion yen to acquire the U.S. Internet company Verio. At the time, it was one of the largest overseas M&A deals by a Japanese company.

    The outcome became clear one year later. A 500 billion yen impairment loss. 83% of the investment had vanished.

    External factors （—the collapse of the IT bubble ）—did play a role. However, the fundamental problem lay in the design of the post-merger integration (PMI). The planning for “Why did it have to be Vrio?” and “What to do in the 100 days after closing” was inadequate.

    Ajinomoto × Forge Biologics （ 2025 ）

    In stark contrast is Ajinomoto . In 2025, it acquired Forge Biologics, a gene therapy CDMO （ contract manufacturing organization ） based in Ohio, for approximately 55 billion yen.

    Why is this regarded as a success story? Ajinomoto had incorporated a strategic shift toward the biotech business—leveraging its amino acid technology—into its strategy more than 10 years ago. Forge Biologics was a target proactively identified as the “missing piece.”

    The question “Why does it have to be this company?” had been clearly answered even before the acquisition.

    Mizuho Bank × UPSIDER （ 2025 ）

    In 2025, Mizuho Bank acquired a 70% stake in the fintech startup UPSIDER for 46 billion yen.

    The most notable aspect is the integration plan. It was explicitly stated that “management members will retain their shares and continue to operate autonomously.”

    A major Japanese financial institution placed “preserving autonomy” after the acquisition at the core of the contract terms. This shift in design philosophy is the key to successful startup M&A.

    The 4-Quadrant Model to Prevent Innovation Death

    Key Message ： Success or failure hinges on “whether strategy leads or is reactive” × Success is determined by the four quadrants of “autonomous vs. absorptive.”

    There are two axes that determine the success or failure of startup M&A.

    Axis 1 ： Proactivity in Target Selection

    Strategy-Driven ： Actively identified candidates by working backward from the company’s 10-year strategy

    Passive Approach ： Proposed by an intermediary ・ Referral ・ Consideration began following a chance encounter

    Second Axis Depth of integration

    Autonomous ： Founder ・ A design that maximizes the autonomy of the management team

    Absorption ： Large-corporation systems ・ A design that integrates into the corporate culture

    Combining these two axes creates four quadrants.

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    The quadrant ① has the highest probability of success.

    The strategic necessity is clear, and a plan is in place for “what will remain unchanged” even after the acquisition. This is “innovation-preserving M&A.”

    Quadrant ④ is the most risky.

    A passive decision based on “we bought it because a good deal came along,” coupled with unilaterally imposing the rules of the larger company—this is the pattern into which the vast majority of failed M&A deals (70–75%) fall.

    Comparison of Common Mistakes and Recommended Approaches

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    Self-Assessment Checklist ： Is your company in the ① quadrant

    Please answer the following questions honestly.

    Prior to the acquisition

    The company’s 5-year ・ and 10-year strategies were agreed upon by the board of directors, and and had articulated the necessary capability gaps

    actively identified the target company （ rather than relying on an intermediary ）

    We confirmed in advance with the legal team the risks associated with CFIUS review and its impact on the schedule

    A PMI leader has been appointed prior to the acquisition

    Post-acquisition
    6a> A retention plan addressing the risk of key personnel, including the founder ・, leaving the company has been documented

    The list of “things to keep unchanged” was created before the list of “things to change”

    The areas where decision-making authority remains with the founders are explicitly stated in the contract

    The milestone for determining the success or failure of PMI is set at 12 months a> 24 months

    If 6 or more out of 8 answers are “Yes,” you fall into this quadrant ①. If 4 or fewer, review the integration design immediately.

    Cost Reality ： The scale of losses “if not done”

    The appropriate level for PMI costs in startup acquisitions is 5–10% of the acquisition price. These costs include not only payments to PMI consultants but also retention ・ bonuses to keep key personnel, a buffer for system integration, and the cost of dispatching bridge personnel to local offices.

    For a 5 billion yen acquisition, the PMI budget would be 250 million to 500 million yen. This may seem like a “significant expense.”

    However, the losses incurred by neglecting PMI can amount to 30–80% of the acquisition price. In the case of NTT, 83% was lost.

    If PMI fails in a 5 billion yen deal, that translates to a loss of 1.5 to 4 billion yen in value. “Saving on the PMI budget” results in losses more than ten times that amount—this is the economics of startup M&A.

    Another factor to consider is opportunity cost. Failing to secure the innovation sought through M&A causes the technological gap with competitors to continue widening. That loss does not appear on the financial statements.

    Three Actions You Can Take Right Now

    Key Message ： Only strategic buyers can truly acquire innovation.

    Action 1 ： Articulate “Why M&A? Why now?” to the board of directors
    Before selecting M&A targets clearly articulate “what your company is lacking” and “why organic growth won’t be enough.” Without this, you cannot break free from reactive M&A.

    Action 2 ： Appoint a PMI leader in advance
    The success or failure of an M&A deal is determined by the actions taken after the deal closes. Involving the PMI leader from the due diligence phase and creating a “100-Day Post-Closing Plan” significantly increases the probability of success.

    Action 3 ： Include “Cultural Due Diligence” as a mandatory item
    In addition to financial ・ and legal due diligence, which are a given, incorporate cultural due diligence—which assesses “the founder’s source of motivation,” “the risk of team members leaving,” and “the compatibility of decision-making styles”—into the formal process.

    Summary ： “Having made the acquisition” is merely the starting point

    Acquisitions of U.S. startups by Japanese companies are surging between 2024 and 2025. According to Bain & Company, the total value of M&A by Japanese companies in 2025 reached a record high.

    However, while the number of deals increases, so do the number of success stories—but the number of failures increases even more. The M&A failure rate remains at 70–75%.

    To truly “gain innovation” through startup M&A, post-acquisition planning—including appropriate investment in PMI, protecting founders’ autonomy, and designing KPIs specific to startups—is essential.

    “Having made the acquisition” is merely the starting point. The real work begins here.

    Target Selection for U.S. Startup M&A ・ If you would like to consult with an expert regarding PMI design, please book a free consultation via the link below.

    Cross-Border Specialists ｜ HGMI
    Horizon Global Management Integration （ HGMI ） supports Japanese companies expanding into the U.S. ・
    www.horizongmi.com

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    Original Article （ Note.com ） : https://note.com/masa_us_biz/n/n0654b7e4947c

    • Introduction / Professional
    • 2026/06/25 (Thu)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    Three Reasons Why Japanese Companies Fail to Gain "Innovation" Even When They Acquire U.S. Startups

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    Despite the acquisition, the founder left. The engineers disappeared too. All that remained were the high acquisition costs and the title of “separate company”—this is the reality facing many Japanese companies.

    Little-Known Facts ： Japan Is the “World’s Largest CVC Investor”

    Let’s start with some shocking figures.

    In the fourth quarter of 2023, Japanese megabanks swept the top three spots in the global ranking of corporate venture capital （ CVC ） investment deals. Mitsubishi UFJ Capital invested in 22 companies, SMBC Venture Capital in 18, and Mizuho Capital in 15. Japan is, in name and in reality, the world’s largest investor in startups.

    Yet why does it fail to “capture innovation”?

    The answer is simple: they believe in the illusion that “innovation will come if you pay for it.” The value of a startup lies neither in patents nor in equipment, but in the people and the culture they create.

    The moment an acquisition agreement is signed, that value begins to seek an exit.

    The Essence of Failure ： “Acquisition” and “Acquiring Innovation” Are Two Different Things

    There are two completely different objectives in startup M&A.

    The financial return model is a pure investment aimed at capital gains from a future IPO or business sale. The relationship with the startup is that of a “shareholder,” and involvement in management can be kept to a minimum.

    The innovation-acquisition model aims to transform the investor’s own business by incorporating technology ・, talent ・, and business models. In this case, post-acquisition PMI （ and business integration ） determine the success or failure of the entire endeavor.

    The majority of failures by Japanese companies stem from aiming for the “innovation acquisition model” while approaching it with the mindset and structure of the “financial return model.” They can make the investment, but they cannot integrate the acquired business.

    Analyzing the three mechanisms of failure

    Failure ① ： Disconnect in decision-making speed
    At U.S. startups, critical decisions are made within hours to days. Product pivots, hiring ・ and layoffs, partnerships—everything moves at high speed.

    In contrast, Japanese parent companies must go through “approval procedures,” “board meetings,” and “headquarters confirmation.” According to Frontier ・ Management, decision-making at Japanese companies routinely involves lead times of “weeks to months” compared to U.S. acquirers.

    If this disconnect isn’t resolved after the acquisition, the startup’s founding team will choose to resign out of frustration that “nothing gets decided.” You’ve paid the money, but the people disappear. This is the most common pattern of failure.

    → So What ？ It is essential to document the “scope and authority of delegated decision-making” prior to the acquisition and clearly define the areas where the startup can operate autonomously.

    Failure ② ： “Indirect Governance” as a Euphemism for Neglect

    After overseas acquisitions, Japanese companies often adopt a strategy of “indirect governance,” in which they allow the local management team to remain in place. At first glance, this appears to respect the startup’s autonomy. However, in reality, it is a reflection of the fact that there is “no vision for how to integrate the company.”

    As a result, neither value creation nor technology transfer takes place. The acquired startup is left to operate as a “separate company.” A few years later, it is “declared a failure” as a costly investment that brought no transformation to the parent company’s business.

    “Leaving it up to them” and “neglecting them” are entirely different things. The minimum requirement for integration is to guarantee autonomy while incorporating regular management reviews and a support system.

    Failure ③ ： Valuation "overvaluation"

    Silicon Valley startups are traded at valuations that are “unreasonable” by Japanese standards. As of 2024, the average EV/Revenue multiple for SaaS companies is 6.8x. AI startups command a premium several times higher than that.

    Furthermore, in “acquihire” （—acquisitions aimed at talent acquisition ）—the market rate per engineer ranges from $1 million to $2 million. Big Tech spent over $40 billion on talent acquisitions in 2024–2025. Google invested $2.7 billion in Character.AI, and Microsoft invested $650 million in Inflection AI.

    When Japanese companies enter this competition, they often face a choice between missing out on good deals due to slow decision-making or rushing into purchases at inflated prices. Determining whether to buy now and conducting a calm assessment of whether they can win the competition are the most critical tasks before an acquisition.

    Three Real-World Case Studies ： Learning from Failures and Successes

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    KDDI’s acquisition of SORACOM is a “counterexample” that has drawn industry attention. It directly refuted the conventional wisdom that “startups acquired by large corporations experience slowed growth.” It grew precisely because it maintained its autonomy. Whether Japanese companies can grasp this paradox will determine the success or failure of their M&A efforts.

    The Competitive Landscape in 2025 ： Japanese Companies Have No Time to Spare

    In 2025, Japan’s overseas M&A market is expanding rapidly. In the first half of 2025, the total value of M&A by Japanese companies reached a record high of approximately 31 trillion yen （—3.6 times the figure for the same period the previous year ）.

    Interest in AI startups is also exploding. M&A activity related to AI agents has become particularly active, and global funding for AI startups is expected to double in 2025 compared to 2024.

    Ajinomoto （ in January 2024 ） and Yamaha （ in December 2024 ） successively established corporate venture capital (CVC) funds in Silicon Valley . Yamaha’s investment fund totals $50 million. This trend is expected to continue.

    The question is not “whether to enter the market,” but “how to enter it.”

    What is noteworthy is the fact that Japanese megabank CVCs dominated the top three spots globally in 2023. This is not merely a matter of “the size of assets under management.” However, for many non-financial Japanese companies, CVCs are still in a state where “they’ve tried it but haven’t seen results.” What accounts for this difference? The clarity of strategy and the presence or absence of a PMI framework.

    Self-Assessment Checklist ： Is Your Company Ready?

    Please review the following items. If you check half or fewer of these items, there are steps you should take before rushing into an acquisition.

    Defining Objectives

    KPIs for the three years following the acquisition are defined in numerical terms

    Criteria for “failure” （ Cut-off point ） has been determined in advance

    Agreement on whether to pursue a financial return model or an innovation acquisition model,

    Target evaluation

    Cultural compatibility （ History of collaboration with Japanese companies ・ Motivation

    Estimated the potential impairment of value

    Compared valuations with similar deals

    Integration planning

    Documented documented the scope of the startup’s autonomy

    designed retention packages for key personnel

    agreed in advance on decision-making rules between Japan and the U.S.
    6a> Ongoing Management

    Designed a monthly monitoring system

    Secured expert advisors on cultural integration

    Have criteria for transitioning to “full integration”

    The “true competitors” after an acquisition are the Big Tech companies

    There is a fact that is often overlooked. When Japanese companies seek to acquire U.S. startups, they’re not just competing against other Japanese companies. Microsoft, Google, and Meta are sitting at the same table.

    If Japanese companies enter this competition with a system where “decision-making takes three months,” they won’t be able to secure good deals. Startup founders choose partners based on three factors: a sense of speed ・, brand strength ・, and a guarantee of autonomy. Unless Japanese companies create a structure that gives them an overwhelming advantage in these areas, they cannot win.

    So, how can they differentiate themselves? The answer is “market access.” If we can leverage Japan’s massive customer base ・, distribution network ・, and manufacturing capabilities, “joining the umbrella of a Japanese company” will become an attractive proposition for startups. There are actually many U.S. startups that feel frustrated because they have the technology but lack a market. This is precisely the competitive advantage that only Japanese companies can create.

    Reasons to Rely on Experts ： M A: “Closing” Is Not the End

    The most common failure in U.S. startup M&A deals is a knowledge gap caused by “advisor turnover.”

    M&A advisors until the deal closes, separate consultants for PMI support, law firms for legal matters, and the HR department for labor issues—this fragmentation causes the integration to collapse.

    Successful M&A deals have a system that manages the entire process—from target selection to PMI execution and ongoing governance—in a seamless, end-to-end manner. It is essential to adopt a perspective that does not end with the “acquisition” itself, but continues until “innovation has been firmly established.”

    Summary ： Can You Adhere to the Three Principles?

    For Japanese companies to succeed in M&A with U.S. startups, they have no choice but to adhere to these three principles.

    Clarify the objective （ Is it for financial returns or to acquire innovation? ）

    Guarantee autonomy 6a> Just as KDDI did with SORACOM ）

    Retain talent （ If the founding team leaves, the value disappears ）
    “Acquisition” is a means to an end, not the end itself. Companies that cannot envision what they aim to achieve beyond that need to stop and rethink their strategy immediately.

    One discussion that must not be overlooked is that of “total cost.” When acquiring a U.S. startup, the total cost includes not only the purchase price but also PMI costs ・, talent retention costs ・, legal and compliance costs ・, and the management time spent on cultural integration. It is not uncommon to think you’ve “gotten a good deal,” only to find that the integration costs exceeded the purchase price. Furthermore, it is necessary to estimate the exit costs in the event of failure. Liquidating a subsidiary in the U.S. involves legal procedures ・, employee compensation ・, and creditor settlement, which can take anywhere from several months to over a year.

    We strongly recommend that executives ・ and CFOs considering M&A with U.S. startups start by consulting with experts. Simply taking stock of your company’s situation can reveal risks you hadn’t previously considered. Selecting experts who can provide end-to-end support—from target selection to integration planning—is the shortest path to success.

    Cross-Border Specialists ｜ HGMI
    Horizon Global Management Integration （ HGMI ） supports Japanese companies expanding into the U.S. ・
    www.horizongmi.com

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    Original Article （ Note.com ） : https://note.com/masa_us_biz/n/n10ed204a967f

    • Satisfaction guaranteed / Life / Housing
    • 2026/06/24 (Wed)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    🏡 Are you thinking about moving to Dallas? ？

    Since the process of buying a home in the U.S. is very different from that in Japan, I’m sure you have many concerns and questions.

    As a bilingual (Japanese and English) Realtor, I help Japanese clients moving to the Dallas ・ Fort Worth area understand the U.S. home-buying process in a way that’s easy to follow.

    ✅ Explanation of the U.S. home-buying process in Japanese
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    ✅ Dallas ・ Frisco ko ・ Prosper ・ Serina, and other locations in the DFW area

    In addition to home purchases,

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    “I plan to return to Japan in the future—is it okay to buy a house? ？ ”
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    “What should I do if I decide to sell? ？”

    We provide comprehensive support to address these concerns and more—from before you buy all the way through your exit strategy.

    From finding a home in the U.S. to future sales ・ and rental management. Please feel free to contact us.

    📩 Nana Williams
    🏡 Dallas-Fort Worth Relocation Specialist
    🇯🇵 Japanese ・ English available

    Please feel free to contact us in Japanese!

    • Introduction / Professional
    • 2026/06/24 (Wed)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    The Real Reason Japanese Companies Are Told “Nothing Gets Decided” in the U.S.—The Divide Between Japanese and American Business Cultures and a Plan to Bridge It

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    Top American talent is leaving. Decisions that were supposed to have been made in meetings aren’t being implemented. This isn’t a matter of their loyalty, nor is it a problem with your English skills. The cause lies in the fact that the （ institutional design ） of Japanese companies functions as a “bug” in the U.S.

    Key Message ： The true cause of the disconnect is not “language” but the “philosophy behind decision-making design”

    Failures in Japan-U.S. business communication cannot be resolved simply by improving English proficiency.

    At the root of the problem lies a difference in the design philosophy of decision-making between “high-context culture （ Japan ） ” and “low-context culture （ the U.S. ） .” This concept, proposed by cultural anthropologist Edward ・ Hall, is the sharpest scalpel for dissecting the divide between Japan and the U.S.

    In Japan （, a high-context ） society, the premise is that “things are understood without having to be said.” Agreements are reached through behind-the-scenes negotiations before meetings, and the meetings themselves are merely a formality to confirm those agreements. Silence is an expression of consent, and reading the room is considered a virtue.

    In the （ low-context ） culture of the United States, the premise is that “if it isn’t put into words, it doesn’t exist.” Meetings are the very venue for decision-making, and silence is a signal of disagreement or confusion. Taking responsibility for one’s words is seen as a sign of sincerity.

    The United States is one of the world’s most low-context cultural regions. Japan, conversely, ranks among the world’s most high-context cultural regions. When these two nations interact, structural misunderstandings are inevitable. English proficiency is irrelevant.

    Unless this difference is incorporated into institutional design, friction will persist.

    Shocking Figures—The “Communication Breakdown” Generates Three Costs

    Cost 1 ： 86 trillion yen in lost opportunities due to the collapse of employee engagement

    Gallup （ 2024 survey reveals shocking figures.

    Japan’s employee engagement rate is a mere 6–7%. This is less than a quarter of the global average of 23%, placing Japan at the lowest level in the world. The number of （ actively disengaged ） employees is four times that of engaged employees.

    This low engagement results in an annual opportunity cost of 86 trillion yen across all Japanese companies （ (Gallup estimate, 2023) ）. This loss is on a scale comparable to Japan’s national budget.

    So, what happens at U.S. offices where the culture of the Japanese headquarters is imported as-is? The answer is obvious. Exposed to Japanese-style “laying the groundwork” ・, “approval processes” ・, and micromanagement, the engagement of American employees declines even more rapidly.

    Cost 2 ： Snowballing turnover costs

    JETRO （ FY2024 North America Survey ） In this survey, 68.4% of Japanese companies in the U.S. cited “employee retention” as one of their top management challenges.

    When an employee leaves, costs such as recruitment advertising ・, recruitment agency fees ・, interview costs ・, training expenses ・, and productivity losses during the handover period accumulate. According to general U.S. HR surveys, the total cost amounts to 50–200% of the position’s annual salary. For an organization of 50 employees with an annual turnover rate of 20%, this translates to “hidden losses” quietly accumulating to the tune of several million dollars per year.

    Cost 3 ： Lost opportunities due to delayed decision-making

    While Japanese companies spend 6 months to a year on M A or considering investments, startup stock prices frequently triple. According to multiple VCs interviewed by （ TechBlitz ）, a common sentiment is: “The atmosphere during meetings with Japanese companies is positive, but when we follow up six months later, we’re told they’re still reviewing the proposal internally. In the meantime, the stock price has tripled.” “Under review” is synonymous with abandoning the opportunity.

    Five “cultural clash” patterns that occur daily on the ground

    Pattern 1 ： The Misunderstanding That “Nodding ＝ Means Agreement”

    When a Japanese manager finishes an explanation, an American subordinate nods. The Japanese manager interprets this as “agreement.” However, an American’s nod is a signal that they are “listening,” not an expression of agreement.

    The following week, when told, “I haven’t heard anything about that matter,” the Japanese manager is left perplexed. This is one of the most common “incidents” at Japanese companies in the U.S. The solution is simple. After every meeting, be sure to document “who ・ will do what ・ by when” and share it with everyone within 24 hours. An agreement only exists once it is put in writing.

    Pattern 2 ： From Being Labeled a “Micromanager” to a Lawsuit

    Polite, Japanese-style guidance ・—checking on progress—is interpreted in the U.S. as “a boss who meddles too much in the details ＝ a micromanager.”

    Americans work under a “job-based employment” system that assumes autonomous decision-making. When their work is micromanaged, they feel that “their expertise is being denied,” and their engagement plummets. Furthermore, when continuous monitoring and criticism accumulate, there is a risk that this could escalate into harassment ・ or discrimination lawsuits. Cases are on the rise at Japanese companies in the U.S. where Japanese managers find themselves in court while still believing they are simply “providing careful guidance.”

    Pattern 3 ： Meetings Where “Laying the Groundwork” Doesn’t Work

    Japanese managers typically discuss matters individually before a meeting to determine a “compromise.” The meeting is supposed to be a formality.

    However, Americans do not have the concept of “laying the groundwork.” They expect to receive information for the first time during the meeting and want to discuss it on the spot. When Americans attempt to overturn something that was “already decided” in advance, Japanese people view this behavior as “failing to read the room.” Americans, on the other hand, get angry, asking, “Why was I excluded from the decision-making process?” It’s a dynamic in which both sides feel the other is ignoring the “proper way” of doing things.

    Pattern 4 ： “Ringi”: A Fossilized Decision-Making Process

    Ringi （ ） This system does not exist in the United States. The idea that a single decision requires the approval stamps of all stakeholders is incomprehensible to Americans.

    As a Frontier ・ management survey points out, in U.S. M A transactions, the seller （ PE fund ） drives the sale process according to a tight schedule. By the time Japanese companies attempt to make a decision through their internal approval process, the deal has already gone to another buyer. The label of “companies that take six months to make a decision” has become a common perception of Japanese firms, whether in the Silicon Valley M&A market or the Southeast Asian VC market.

    Pattern 5 ： The Reversal of How Silence Is Interpreted

    In Japan, “silence is golden.” Silence to gather one’s thoughts is considered a virtue and a sign of respect for one’s superiors.

    In the U.S., it’s exactly the opposite. If you remain silent when asked a question by an American, it is interpreted as “an insult,” “a lack of understanding,” or “rejection.” NTT × A 2024 joint study with the Tokyo Institute of Technology also quantitatively confirmed the differing impacts that differences in Japanese and American communication norms have on workplace well-being.

    Comparison Table ： Common Mistakes and an Effective “Japan-U.S. Hybrid” Approach

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    Learning from Real Examples—The “Cultural Disconnect”

    SoftBank × Sprint （ Investment Amount ： Approximately $20.1 billion ） a>
    In 2013, SoftBank acquired Sprint, then the third-largest U.S. mobile carrier, for approximately $20.1 billion. However, despite dispatching a large number of engineers from Japan to improve the network, the project site was thrown into chaos due to differences in communication culture between Japan and the U.S. Sprint executives were reportedly speechless to see “ordinary employees” participating in SoftBank’s management meetings, according to （ a Nikkei report ）. Plans to merge with T-Mobile US were derailed by opposition from the FCC, and Sprint was effectively sold off in 2020. After seven years of struggle, the withdrawal was partly due to differences in communication structures.

    The lesson is simple. No matter how much financial resources a company has, integration will not succeed if the communication framework between organizations does not function properly.

    Rakuten’s Declaration to Make English the Official Language （ in 2010 – Present ）

    Hiroshi Mikitani declared English as the official language, and it was fully implemented in 2012. As a result, the proportion of foreign employees rose from 2% to over 20% （, with engineers accounting for nearly 50% ）.

    However, internally, veteran employees in their 40s and older who failed to meet the TOEIC target scores left the company, resulting in the loss of accumulated on-the-job knowledge. In an environment where “communication is possible only in English,” some executives found themselves unable to convey subtle nuances or make proposals to management. According to Business Journal （ 2025 ）, failing to meet TOEIC targets carries the risk of pay cuts ・ or demotion, and the problem of “English being a barrier even for those with technical skills” remains unresolved as of 2025.

    The lesson from Rakuten’s case is clear: the key to globalization is not English proficiency, but the ability to translate cultural contexts. Simply relabeling the language will not resolve the fundamental disconnect unless the structure of decision-making changes.

    Self-Assessment Checklist—Your Company’s “Cultural Disconnect Risk Score”

    Please count the number of items below that apply to your company.

    An American staff member says, “I didn’t know about this,” at least once a month

    No follow-up email is sent after meetings （ From the Japanese side ）

    A Japanese manager “nodded ＝ agreed” , which caused problems

    It has become the norm for decision-making to take three weeks or more

    The annual turnover rate at the U.S. office exceeds 15%

    During the recent M&A ・ investment review, there have been deals where “the timing was missed”

    Salaries for American staff are more than 10% below the local market rate

    Exit interviews are not being conducted, or the results are not analyzed

    There are instances where Japanese managers cannot explain “why they do things” in English

    3 or more items ： The cultural disconnect is becoming severe. A review of organizational diagnostics and system design is urgently needed.

    5 or more items ： The risk of key personnel leaving and of litigation is increasing. We strongly recommend consulting with experts.

    The essence of the solution—not “translation training” but “system redesign”

    This is not to say that cross-cultural training or improving English proficiency is unnecessary. However, those measures alone are insufficient.

    People act within systems. Unless the system changes, the knowledge gained through training will vanish the moment they return to the workplace. What is needed is to transform the decision-making process itself into a “design that allows both Japan and the U.S. to act without hesitation.”

    The Three Pillars of Institutional Reform

    The First Pillar ： A Decision-Making System That Eliminates the Need for Behind-the-Scenes Negotiations
    6a> Introduce the RACI matrix （—Responsible / Accountable / Consulted / Informed ）—to ensure that every member of the organization understands “who the final decision-maker is.” Once the decision-maker is clear, the need for behind-the-scenes lobbying disappears. At the same time, setting “approval deadlines” in the digital approval workflow systematically eliminates the risk of items remaining “under review” indefinitely.

    Pillar 2 ： Meeting Design to Eliminate Information Asymmetry

    Make it mandatory to share the agenda by the day before the meeting, and and immediately document decisions made during the meeting. Establish a system where a memo clearly stating the three points—“Who ・ will do what ・ by when”—is sent to everyone within 24 hours. This alone will eliminate the majority of “I wasn’t informed” issues.

    The Third Pillar ： Quantitative Monitoring of Cultural Friction

    Engagement Scores （ Gallup Q12, etc. and track turnover rates on a quarterly basis. By visualizing this data, progress on cultural integration can be made an official agenda item at executive meetings. This creates a situation where management decisions are based on data, rather than on subjective impressions such as “I feel like the atmosphere has improved.”

    When systems change, behavior changes. When behavior changes, trust builds.

    Summary ： Treat “communication issues” as the top management priority

    If the disconnect between Japanese and U.S. business cultures is left unaddressed, a triple whammy will ensue.

    First, employee turnover （—a sharp rise in hiring costs and the loss of on-the-ground knowledge ）. Second, lost opportunities （—missed M&A ・ investment opportunities due to delayed decision-making ）. Third, litigation risk （—harassment ・ and discrimination lawsuits ） stemming from cultural misunderstandings. These are all management challenges that can be quantified.

    Gallup （ 2024 ）’s finding of a 6% engagement rate in Japan suggests that similar risks are present at U.S. offices where the culture of the Japanese headquarters has been imported.

    There are only three first steps you can take today.

    Calculate the turnover rate at U.S. offices over the past year.

    Reanalyze exit interview data from the perspective of “cultural friction.”

    Compile a list of cases where “slowness” impacted recent M&A considerations.

    Once these three data points are gathered, you can estimate the cost of cultural disconnect. And that figure is bound to be “higher than expected.” The problem lies in what you can’t see. That’s why the losses keep piling up.

    Please take advantage of free consultations with experts regarding cultural challenges in U.S. operations.
    https://www.horizongmi.com/

    ━━━━━ ━━━━━━━━━━━
    Original Article （ Note.com ） : https://note.com/masa_us_biz/n/n4ee8aea5d4d9

    • Introduction / Professional
    • 2026/06/23 (Tue)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    The number one reason for leaving Japanese-affiliated U.S. companies is “secrecy.” However, the Japanese employees are not aware that they are keeping things from their Japanese counterparts.

    ▼ Image ▼

    Japanese boss ： “Just keep things moving along smoothly from here. （ I’m sure 90% of it got across. ）” American subordinate ： “ （ There isn’t a single specific instruction. Am I not trusted? ？ ）

    The stereotype of ‘secretive Japanese’ is a misunderstanding

    There is a common misunderstanding that occurs most frequently at Japanese-affiliated U.S. companies. It’s when American employees feel that “Japanese people are hiding information.”

    But the reality is different.

    Japanese managers aren’t hiding information. They assume that “saying this much should be enough to get the point across,” so they verbalize only 10% of the information. The remaining 90% is left to “the atmosphere,” “context,” and “unspoken understanding.”

    American employees lack that context. Only 10% of the message gets through. They interpret the remaining 90% as having been intentionally withheld.

    A survey by Japan Intercultural Consulting reports that one of the most common misunderstandings at Japanese-affiliated U.S. companies is the perception that “Japanese people are secretive.” However, this is not a matter of personality, but rather a matter of cultural communication patterns.

    SHRM （ Society for Human Resource Management ） Survey ： 41% of employees responded that “intercultural communication breakdowns had a negative impact on productivity and engagement.”

    “Structural Differences” Between Japan and the U.S. in Numbers

    We start with the data, not subjective impressions.

    Research by Hofstede （, an authority on cultural psychology ）, quantifies the differences between Japan and the U.S.

    ▼ Image ▼

    What does an Uncertainty Avoidance score of 92 mean? It is the numerical basis for the behavioral principle of “securing a way out by not making explicit statements.” Japanese businesspeople unconsciously try to avoid risk by “avoiding definitive statements and leaving room for ambiguity.”

    The U.S. individualism score of 91 is the foundation of a culture that “clearly states one’s position and seeks direct feedback.”

    It’s not hard to imagine what happens at Japanese-affiliated U.S. companies where these two cultures intersect.

    Counterintuitive Insight ： It is the U.S. side that perceives “cultural issues” as a serious problem

    Many executives at Japanese companies say, “We understand the cultural differences.” That’s why they conduct both English language training and cultural awareness training.

    However, Deloitte’s （ 2024 ） cross-border M&A survey revealed a paradoxical fact. In cross-border M&A between Japan and the U.S., a significantly higher proportion of U.S. executives than Japanese executives cite “cultural integration and alignment” as a key challenge in PMI (post-merger integration).

    What is even more serious is that, even though both sides use the same term “cultural issues,” what they mean by it differs fundamentally between Japan and the U.S.

    The Japanese side perceives “culture” as “process friction.” They view it as procedural issues, such as meetings running long or coordination taking too much time. On the other hand, when the U.S. side refers to “culture,” they are pointing to the fundamentals of organizational design—such as where decision-making authority lies, escalation pathways, and risk tolerance standards—in other words, “who has the authority to decide what and when.”

    As long as there is a discrepancy in how the problem is defined, the solutions will also be off the mark. “English training” and “cultural seminars” do not resolve this fundamental discrepancy. They merely alleviate the symptoms without addressing the root cause.

    Why do approval processes ・ and behind-the-scenes negotiations appear to be a “black box”?

    An executive who has worked with Japanese companies in the U.S. testified as follows （ from a Best Times article ） .

    “I feel that the approval process is a mechanism designed to obscure who bears ultimate responsibility when a problem arises. Decisions really take a long time. Dozens of signatures are required to get anything started, and no explanation is given as to why so many people are needed.”

    For Japanese people, “laying the groundwork” is a “careful process of building consensus.” However, to Americans, it appears to be an “opaque process” and a “diffusion of responsibility.”

    According to a JBpress report, Japan’s “preliminary groundwork” and Western “behind-the-scenes negotiations” are similar on the surface but fundamentally different. Japanese “preliminary groundwork” is a process of “finalizing conclusions before official meetings,” with the meetings themselves serving merely as a formality to rubber-stamp those decisions. Backchannel negotiations in the West, on the other hand, are a process of “exploring options at a stage where no answer has yet been reached.”

    When Americans who do not understand this difference participate in Japanese-style meetings, they tend to feel, “What is the point of this meeting? If it’s already been decided, this is a waste of time.”

    A common pattern revealed by the failures of three companies

    SoftBank × Sprint ： 4. A 1 Trillion Yen Price Tag

    In July 2013, SoftBank acquired Sprint for approximately 1.8 trillion yen. As of December 2017, approximately 26% of SoftBank’s interest-bearing debt （—over 4.1 trillion yen ）—stemmed from Sprint （ (Business Journal, 2018 ）). In April 2020, the merger with T-Mobile effectively marked SoftBank’s withdrawal from the U.S. market.

    One of the factors behind the failure was “cultural friction between the Japanese sense of urgency and the bureaucratic culture of large U.S. corporations.” Much of what the Japanese side believed they had “communicated” never reached the U.S. front lines.

    Rakuten’s Adoption of English as the Official Language ： The Real Obstacle That Awaits Beyond Language

    Rakuten began fully implementing English as its official language in 2012. TOEIC scores averaged over 830 (excluding employees who had lived abroad as children), and the transformation was so significant that Harvard ・ Business ・ School adopted the program as teaching material.

    However, the fundamental challenge reported from the front lines was not “language.” Dismantling the culture of tacit knowledge—which emphasized “intuition,” “reading the room,” and “following established conventions”—proved far more difficult. Even when speaking English, Japanese managers still verbalized only 10% of the information. Simply changing the language did not change the underlying structure.

    Japanese-affiliated U.S. manufacturing company ： Annual turnover rate of 30%

    According to a survey by Japan Intercultural Consulting, a case was reported where a regional headquarters of a Japanese-owned U.S. manufacturing company recorded an annual turnover rate of 30%. The main causes of turnover were “a lack of transparency in information” and “uncertainty regarding career growth.”

    NG vs. Recommended ： Common Contrasts in the Field

    ▼ Image ▼
    The Reality of Turnover Costs—How Much Is Lost Annually If Left Unaddressed

    Estimates based on an annual turnover rate of 30% at a Japanese-affiliated U.S. subsidiary with 50 employees.

    Annual turnover ： 15 employees

    Cost per employee （ Hiring ・ Training ・ Productivity loss ） ： 15–30% of annual salary. Assuming a mid-level manager’s annual salary $ of 120,000, the cost ranges from $ 18,000 to $ 36, 000

    Total annual cost ： $ 270,000– $ 540, 000 （ approximately 40 to 80 million yen ）

    These are not “labor costs,” but rather management costs resulting from neglecting cultural gaps.

    Another factor that is often overlooked is “knowledge leakage.” Local-hire managers who leave the company take their knowledge of the company’s business processes ・ customer relationships ・ and market insights with them when they move to competitors. Japan Intercultural Consulting describes this as “Japanese companies becoming training centers for competitors.”

    The annual investment cost for redesigning communication systems ranges from $ 80,000 to $ 150,000 for companies of this size. In terms of ROI, the break-even point is reached within one year.

    Three Actions You Can Take Right Now

    Action 1 （ This Week ） ： Create an Authority Matrix

    Compile a single sheet summarizing who has approval authority for what amounts and within what ranges, and share it with all locally hired leaders. This will immediately eliminate situations where people say, “I didn’t know.” Cost ： Internal man-hours only.

    Action 2 （ Starting next month ） ： Establish the “WHY” First Rule

    For all meetings “Agenda ・ Purpose ・ Background ・ Decisions ・ Next Actions ・ Person in Charge ・ Deadline.” In particular, make the “Background” field mandatory. By articulating “why this is important right now” at every meeting, the habit of speaking only 10% of the time will be forcibly changed. Cost ：: Zero.

    Action 3 （ Starting this month ） ： Launch “reverse 1-on-1s”

    Japanese managers will set up a monthly session to ask locally hired leaders. The agenda is: “What information do you want to know but aren’t being told?” and “What aspects of the decision-making process do you find opaque?” Simply repeating these questions will make the root of the problem visible. Cost ： zero.

    Self-Assessment Checklist

    If you answer “Yes” to three or more of the following, be cautious.

    Locally hired leaders cannot explain “why this policy was adopted”

    “Who decided what”

    Budget ・ HR authority is not documented

    Locally hired leaders are unaware of the strategy set by the Japanese headquarters

    Employee evaluations are limited to an annual performance review

    Information is sometimes sent with only “FYI” as the subject line

    When giving instructions, they sometimes fail to explain the “why”

    Some information is shared only among Japanese expatriate employees

    Three or more ： The turnover rate is at risk of being 1.
    Five or more ： Significant brain drain ・ Potential for legal trouble. We recommend an immediate organizational diagnosis

    Summary ： Redefine what it means for a message to be “understood”

    The gap between Japanese and American business cultures is neither an emotional nor an ethnic issue. It is a structural problem of contextual asymmetry that can be resolved through organizational design ・ and process design.

    “Saying” something and “it being understood” are different. Even if a Japanese manager feels they have “said” something, it may not have reached the American—it is “systems,” not “understanding,” that resolve this asymmetry.

    An organization that verbalizes 90% of its communication will not emerge unless it is intentionally designed. Conversely, if you design the right systems, the organization will function even with limited cultural understanding.

    The question you should ask isn’t “Why isn’t this getting across?” but “What percentage of my message am I articulating?”

    Business Expansion Between Japan and the U.S. ・ To consult with an expert on organizational design, please take advantage of our free initial assessment.

    Cross-Border Specialists ｜ HGMI
    Horizon Global Management Integration （ HGMI ） supports Japanese companies expanding into the U.S. ・
    www.horizongmi.com

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    Original article （ Note.com ） : https://note.com/masa_us_biz/n/nc7c3328d4367

    • Satisfaction guaranteed / Restaurant / Gourmet
    • 2026/06/22 (Mon)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    Slowly aged for 1 to 2 weeks to bring out the flavor of the fish.

    You will be surprised by its gentle texture and rich flavor.

    Mr. Sushi Japanese Restaurant presents a very special consistent product.

    Carefully selected fish is cured slowly at low temperature for a short period of time.
    The flavor is concentrated without losing excess water.
    It has a light yet deep flavor.

    A unique product of Mr. Sushi, utilizing Edo-mae techniques and the wisdom of aging.

    "I didn't know it could be so tender and rich in flavor …"
    -- All the staff who tasted it were amazed by this confident product.

    A new experience of fish that goes beyond the boundaries of a sushi restaurant.
    Please enjoy the perfect balance of freshness and maturity with your own taste buds.

    • Satisfaction guaranteed / Restaurant / Gourmet
    • 2026/06/22 (Mon)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    Aged slowly for 60 days.　We were surprised at the softness and flavor beyond our imagination.

    Mr. Sushi Japanese Restaurant presents a special dish.

    Wet aged beef, which is carefully selected beef and aged in a vacuum for 60 days, is finally available.

    By laying it down slowly at a low temperature, excess moisture is kept out and the flavor and tenderness are brought out to the utmost limit.

    A unique product of Mr. Sushi, finished with Japanese techniques.

    "I never thought it would be this good …"
    -- All the staff who tasted it were surprised by this confident product.

    Please try this meat dish that goes beyond the boundaries of a sushi restaurant and see for yourself.

    Mr. Sushi Japanese Restaurant is serious about its meat dishes,
    which are beyond the realm of a sushi restaurant.

    We look forward to serving you.

    • Signature service / Restaurant / Gourmet
    • 2026/06/22 (Mon)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    Fresh fish available 🐟 ] Come to Mr. Sushi Japanese Restaurant ♪.

    A cozy restaurant frequented by both locals and Japanese.
    A place where you can enjoy authentic sushi prepared by Japanese chefs at reasonable prices ！

    ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・

    All fish are shipped directly from Toyosu, Japan ！ ！ "Safe" and "Secure" fish.
    We bring in seasonal fish from Japan 6 times a week, so you can enjoy the freshest fish of each season.

    We offer sushi ＆ dishes that you can easily enjoy with your family ・ and friends.　　
    Please spend time with your loved ones ！

    ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・

    ＼ We also have this recommendation ！ ！ ／

    ◆We also have bar seating
    After having sushi for dinner, please enjoy drinks at the bar ♪


    ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・

    If you have a large reservation or a large number of customers, please contact us. If you have a reservation for a large number of people, please feel free to contact us.
    Please call us at ： or visit us at 385-0168

    寿司すし屋和食日本食
    • Introduction / Professional
    • 2026/06/22 (Mon)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    Success or Failure in Expanding into the U.S. Depends on the “Back Office”—The Reality of Withdrawal Faced by 60.4% of Companies

    ▼ Image ▼

    “We’ve created a product that will work in the U.S. All that’s left is to bring it to market”—that’s what the executive thought when he went to the U.S. ・ The first obstacle the person in charge faces is an invisible wall known as the “back office.”

    Market research is complete, a local partner has been found, and funding is secured—yet many Japanese companies still stumble. The cause lies not in the product or strategy, but in the fact that the “behind-the-scenes mechanisms that keep the company running” haven’t caught up.

    Shocking Survey Results

    A 2026 Survey on the Reality of U.S. Market Entry （ COEL, Inc. ） Facts Revealed ：

    60% of executives at companies expanding into the U.S. are considering “withdrawal ・ downsizing ・ or changing plans.” The main reason is “back-office ・ and increased operational burdens such as compliance with laws and regulations （ 60.4% ） ”

    It’s not because they lost to the competition, nor because their products didn’t sell. They are being crushed by their own operations.

    This is by no means someone else’s problem. According to the same survey, fewer than 30% of companies reported that they had “thoroughly planned their back-office infrastructure” before entering the market. The remaining 70% only realize the problems after they have entered the market.

    Over “over 30%” of work hours are consumed by back-office tasks

    Even more shocking is the allocation of work hours ：

    About 80% spend 10%

    Of those, over 20% spend 30% or more

    55% of respondents cited “sales ・ negotiations”—the area they should actually be focusing on

    Assuming an 8-hour workday, 30% of that is 2 hours and 24 minutes. Nearly 12 hours a week—time that could have been spent on sales and business development—is consumed by tax processing ・, payroll ・, and legal matters. That adds up to over 600 hours a year. If all that time had been devoted to their “core business,” the results would have been completely different.

    The “Top 5 Challenges” of U.S. Back-Office Operations

    1. Tax ・ Accounting ： Federal ・ State ・ Municipal triple taxation

    The U.S. tax system has a three-tier structure. In addition to federal corporate tax （ Federal Corporate Tax ）, there is state corporate tax （ State Corporate Tax ）, and in some states, municipal business taxes are also levied. Furthermore, tax rates and filing rules vary by state.

    Sales Tax （ ） is particularly fraught with pitfalls. Each state has its own rules for determining （ nexus ）—the threshold for tax liability—and the “economic nexus” system, which triggers a filing obligation once a certain level of sales or number of transactions is exceeded, is spreading across all 50 U.S. states. If you hire employees, obtaining a State Tax ID and registering with the state labor department are also mandatory. If you expand into a market without knowing these requirements, you’ll face hefty penalties later from the IRS （ (U.S. Internal Revenue Service) ） and state tax authorities.

    2. Payroll ： Chaos Governed by State Laws

    California’s overtime rules are completely different from those in Texas. In California, overtime pay is triggered once an employee works more than 8 hours in a day, but many states use 40 hours per week as the benchmark. Minimum wages also vary at the state ・ and city levels; in San Francisco and New York City, they are more than double the federal minimum wage.

    The “mandatory buyout” of unused vacation time is required in California but optional in other states. Operating based on a “Japanese mindset” immediately creates a risk of legal violations. To avoid this, you must prepare an Employee Handbook （ ） tailored to each state and have it reviewed by a local employment attorney.

    3. Visas ・ Immigration Law ： Inability to Relocate Talent

    When attempting to send talented Japanese personnel to the U.S., visas become a major hurdle. The L-1 （ intracompany transfer visa ） requires at least one year of employment history, and it is not uncommon for the process from application to approval to take three to six months. The H-1B （ specialty occupation visa ） involves an annual （ lottery ）; if an applicant is not selected, they must wait until the following year.

    How will the local business operate while waiting for the visa to be granted?—The speed of initial operations after entering the market varies significantly between companies that have prepared an answer to this question in advance and those that have not.

    4. Legal ・ Compliance ： and Litigation Risks Are Ever-Present

    In the U.S., even a single dismissal carries there is a risk of a “Wrongful Termination （ Unfair Dismissal ） Lawsuit.” Even in states with “at-will employment” （—where dismissal is generally permitted ）—if a termination is deemed to be based on gender ・, race ・, age ・, religion ・, or disability, you may face claims for substantial damages.

    Hiring employees without an Employee Handbook in place can result in enormous legal costs later on. Furthermore, if you are based in California, compliance with the CCPA （ (California Consumer Privacy Act) ） is mandatory. Inadequate data management may result in administrative sanctions.

    5. Profit Repatriation ： Unable to Repatriate Profits to Japan

    Transfer Pricing （ Transfer Pricing ） is an issue that companies expanding globally inevitably face. Payments from U.S. subsidiaries to Japanese parent companies—including royalties, management consulting fees, and intra-group service fees—must all be set at “arm’s-length prices.”

    If this is not properly documented （ Transfer Pricing Documentation ）, there is a risk of receiving an assessment from the IRS and being subject to back taxes, surcharges, ・ and even interest charges. Adopting a mindset of “just transferring profits to Japan for now” will lead to painful consequences later on.

    Common “realization-after-the-fact” mistakes

    Here’s what we hear from companies that have actually expanded into the U.S.:

    “We chose an LLC when incorporating, which complicated tax processing with Japan. We should have gone with a C-Corp from the start”—this is a mistake in choosing the corporate structure. A C-Corporation is the most suitable structure for a wholly-owned subsidiary of a Japanese parent company, but changing it later involves significant costs and effort.

    “We hired an engineer in California, but since we hadn’t established employment policies, we were sued by a former employee”—this is a classic example of underestimating the importance of an Employee Handbook.

    “We turned a profit in the U.S. and tried to remit the funds to the parent company, but our tax accountant stopped us, saying, ‘You don’t have transfer pricing documentation.’”—This is a case where planning for profit repatriation was put on the back burner.

    These are all failures that companies “realize too late.” And the cost of “realizing too late” is several times higher than the cost of “planning from the start.”

    Three Principles for Overcoming These Challenges

    ① Assemble a Team of Experts Before Entering the Market

    CPA Certified Public Accountant ）, immigration attorney, and employment attorney—entering the U.S. market without these three professionals is like stepping onto a battlefield completely unprotected. Some business owners view ・ legal and accounting fees as “unnecessary costs,” but compared to the costs of facing litigation or a tax audit later on, they are an overwhelmingly affordable form of “insurance.”

    In particular, you should make it a habit to hire an employment attorney before making your first hire. By not only having them create a template for an employment agreement but also having them draft employment policies in accordance with state law, you can significantly reduce future problems.

    ② For back-office operations, consider utilizing BPO

    BPO （ Business Process Outsourcing ） is an effective strategy. Payroll ・, expense reimbursement ・, and bookkeeping （ ） offer particularly high ROI when outsourced, allowing you to quickly create an environment where your core team can focus on their “core business.” Furthermore, by combining cloud-based tools, even a small team can achieve a level of management on par with U.S. standards. There is no need to build everything in-house from scratch.

    ③ View it as an “infrastructure investment,” not a “cost”

    Management decisions differ depending on whether back-office development is viewed as a “cost” or an “infrastructure investment.” Companies that establish an appropriate structure early on can move at an overwhelmingly faster pace when scaling up. When expanding from 50 to 100 employees—or beyond—the expansion speed differs significantly between companies forced to “react after the fact” each time and those that designed their systems from the start.

    Summary ： Toward an Era of “Designing Before Expansion”

    The U.S. market is truly massive. However, the criteria for companies capable of competing there go beyond product strength alone. Only companies that master the “invisible operations” can compete in the long run.

    Tax ・ Payroll ・ Visas ・ Legal ・ Profit Repatriation— —As long as you view these five areas as “issues to be addressed later,” you will never escape the back-office trap.

    The era of “entering the market first and figuring it out later” is over. Now is the time to transition to an era of “planning before entering.”

    ━━━━━━━━━━ ━━━━━━
    Original Article （ Note.com ） : https://note.com/masa_us_biz/n/n0366013bb0bc

    • Satisfaction guaranteed / Finance / Insurance
    • 2026/06/21 (Sun)

    あらゆる住宅ローンの疑問や悩みに日本語でお答えします！

    120社以上の金融機関のローン製品を取り扱う住宅ローンのブローカーです。
    お一人お一人のニーズに合わせて、最適な条件のローンをご紹介します。

    アメリカの不動産は所収していればほとんど必ずと言っていいほど価値は上昇します。
    平均的なアメリカ人の持つ資産のうちでも最も大きな割合を占めるのが、持ち家となっています。
    どのみちずっとすみ続ける家、目先の金利や市場の動向に惑わされず、買える時にまず買っておく、というのが賢い資産運用の方法でもあると考えています。

    こんなお悩み、ご相談ください！

    ・住宅ローンを組みたいけど、どうすればいい？
    ・リモデルをしたいけれど手元に資金がない。持ち家のEquityを現金化できないか？
    ・投資物件を買って、賃貸収入を得る方法は？
    ・老後の資金繰りが心配、Reverse Mortgageって安全なの？

    自身でもカリフォルニアとハワイに7件の不動産を所有し、短期・長期の賃貸運営を行っています。
    カリフォルニア州の不動産エージェントの資格も有し、不動産売買とローンの両面から最適なアドバイスを提供！
    住宅購入から投資戦略まで、日本語で分かりやすくサポート！

    「頭金がほとんどなくてもで家を買えるのか？」
    「ローンを賢く使って資産を増やす戦略」
    「金利は下がるの？上がるの？待つべきor今動くべき？」

    無料相談随時受付中！まずはお気軽にお問い合わせください。

    牧野　可奈（まきの　かな）
    Mortgage Loan Officer / Realtor®
    West Capital Lending | NMLS# 2504398 | 1566096
    DRE# 02053858 | 02022356

    無料相談受付中！
    まずはお気軽にお問い合わせください！

    • Introduction / Professional
    • 2026/06/19 (Fri)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    The Story of a CFO Who Set Up a U.S. Company for 300,000 yen but Lost Tens of Millions of yen Two Years Later

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    33.5% of Japanese companies are operating at a loss in their U.S. operations. For many of them, the problem began with an underestimation of “startup costs.”

    “Being able to set up a company” and “getting the business up and running” are two different things.

    The CFO of a Japanese SaaS company came to me for advice.

    “It’s been two years since we incorporated in Delaware. But now we’ve received a notice from the IRS regarding a transfer pricing audit, and when I showed it to my tax accountant, they told me we face the risk of a back tax assessment in the tens of millions of yen.”

    It’s true that you can hire a service to handle the incorporation for 300,000 yen. The “paperwork” involved in registration is inexpensive.

    However, the cost of “building” a U.S. corporation that can operate safely is an entirely different matter.

    ❌ Common Mistakes vs. ✅ Recommended Approach

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    What Are the Real Costs?

    Actual Costs in the First Year （ Mid-Sized Companies ・ With Actual Business Operations ）

    Even at the smallest scale, 3 to 5 million yen. For a full-scale office, 10 to 30 million yen or more.

    The following two items are particularly often overlooked in the breakdown.

    ① Transfer pricing documentation （ 300,000–1,000,000 yen per year ）
    Mandatory if there are any transactions between the Japanese parent company and the U.S. subsidiary. Failure to prepare the documentation may result in a penalty of up to 40% during an IRS audit （ IRS IRC 6662 ） .

    ② Multi-state corporate tax returns （ 20 to 600,000 yen × Number of states ）
    Simply hiring one employee in California creates a nexus （ tax presence ） there. It doesn’t end with just a Delaware incorporation.

    Counterintuitive Insights ： The notion that “Delaware is the best option” is often mistaken

    According to a survey by M Accelerator, 73% of foreign founders make $ more than 50,000 legal errors when incorporating a Delaware C-Corp.

    If you incorporate in Delaware but conduct business in California, you’ll be required to pay California’s annual （ minimum franchise tax of $ 800 ） separately. This results in double costs.

    In many cases, direct incorporation in the state where the business actually operates is more cost-effective overall.

    Five Things to Check Before Rushing to Incorporate

    Key Message ： Aim to “get the business up and running” rather than just “incorporate.”

    Do you have exit criteria? ？
    Expanding into a market without setting limits on the amount or duration of losses can lead to boundless losses. Bain Survey （ In 2024 ）, the failure rate for overseas M&A by Japanese companies was 25%, more than four times that of U.S. companies （ (5–6%) ）.

    Have you assessed transfer pricing risks? ？
    All companies with internal transactions between Japan and the U.S. must establish a transfer pricing policy prior to incorporation.

    Have you worked backward from the visa application schedule? ？
    It takes at least six months from incorporation to obtaining an L-1 or E-2 visa. If you rush to complete the incorporation process, you’ll end up with a “ghost corporation” with no one on the ground.

    Have you planned for a bank account? ？
    Major banks strictly scrutinize account openings for foreign corporations with no actual operations. Without an account, you cannot transfer funds or apply for visas.

    Have you secured local experts—（ a lawyer ・ and an accountant ）? ？
    Rather than looking for them after incorporation, assembling a team before incorporation significantly reduces both costs ・ and risks.

    What “End-to-End” Incorporation Support Solves

    The key is the perspective of providing ongoing support until “the day the business launches,” rather than simply handling the incorporation process on your behalf.

    Strategic Planning → Corporate Structure ・ Selection of Incorporation State → Registration ・ EIN ・ Bank Account → Transfer Pricing Planning → Visa Applications → Local Hiring ・ Office → Ongoing Compliance
    Lawyers ・ Accountants ・ Labor Consultants ・ and Business Consultants work as a single team. This eliminates the hassle and risk of coordinating multiple specialists in-house.

    Self-Assessment ： How would you rate your pre-incorporation preparations? ？

    For the items below, ？

    Have you calculated the cumulative investment amount over three years and and obtained management approval

    Consulted an expert regarding transfer pricing risks

    Understand the relationship between the state of incorporation and the state of actual business operations

    The visa application schedule is aligned with the incorporation schedule

    Exit criteria are documented

    All 5 items checked → Preparations are complete 6a> Three or fewer items → Strongly recommended to consult with an expert in advance

    Summary

    “You can set up a company for 300,000 yen” is not a lie. However, that merely means “you’ve obtained a building permit.”

    There are separate costs involved in constructing a building, housing people, and operating it safely.

    If you truly want to launch a business in the U.S., please consult with an expert “before” incorporation.

    Cross-Border Specialists ｜ HGMI
    Horizon Global Management Integration （ HGMI ） supports Japanese companies expanding into the U.S. ・
    www.horizongmi.com

    ━━━━ ━━━━━━━━━━━━
    Original article （ Note.com ） : https://note.com/masa_us_biz/n/n58f8f408c346

    • Introduction / Professional
    • 2026/06/18 (Thu)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    “We’re Not Discriminating”—But We’re Still Being Sued: The Structural Trap Set for Japanese Companies by U.S. Labor Law

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    When laying off employees in the U.S., there is a common misconception among Japanese corporate executives. “Since it’s an ‘at-will’ employment relationship, we can terminate them without cause.” This misconception is the gateway to a legal nightmare.

    The reality revealed by the 2024 statistics from the EEOC （ U.S. Equal Employment Opportunity Commission ）

    Key Message ： A Nation of Lawsuits In the U.S., even if there is no intent to discriminate, you will lose if there is a “structure that is deemed discriminatory.”

    In fiscal year 2024, the EEOC accepted 88,531 discrimination complaints. This represents a 9.2% increase from the previous year and is a record high. Furthermore, the amount the EEOC awarded to workers reached $697 million （—approximately 106 billion yen ）—.

    There is one notable statistic: approximately 50% of the complaints were filed on the grounds of “retaliation”—that is, “the employee who filed a complaint was subsequently fired.” The issue at stake is not whether discrimination “occurred,” but rather “how” the complainant was treated.

    This dynamic is dragging Japanese companies—which operate in good faith—into lawsuits one after another.

    The

    “Three Typical Patterns” Pattern 1 ： Dismissal Cited as “Racial Discrimination” Despite Being Based on Poor Performance

    A Japanese-owned manufacturing company in Ohio. Poor work attitude ・ The company fired a local employee who had received the lowest performance rating. The following month, a notice arrived from the EEOC alleging “discrimination based on national origin” and “retaliatory dismissal.”

    What was the problem? The evaluation criteria for Japanese expatriate employees and local staff were effectively different. Records were insufficient. Furthermore, six months before the dismissal, the employee in question had reported to HR that “the expatriate’s attitude was discriminatory.”

    Once these three factors came together, the company’s chances of winning the case dropped significantly.

    Pattern 2 ： “Japanese-First Promotions” Lead to Class-Action Lawsuit

    U.S. subsidiary of a major chemical manufacturer （ At the Michigan plant ）, a class-action complaint was filed alleging that Japanese expatriates were given preferential treatment regarding promotion opportunities. The settlement with the EEOC amounted to $2.5 million （—approximately 380 million yen ）. Although it was not intentional discrimination, the disparity in the numbers was evident. That alone was sufficient.

    Pattern 3 ： Misclassification as “exempt from overtime because they are managers”

    U.S. FLSA exemption （ Overtime pay exemption ） The criteria are strict. Job duties and annual salary （ must both meet the current threshold of $684 per week or more ）. Simply having a “managerial title” is not sufficient.

    If this misclassification is discovered, employees can claim double the amount of unpaid overtime pay × for the past three years （ in cases of willful misclassification ）. In California, overtime pay is also owed for “more than 8 hours per day,” which further complicates matters.

    In the event of a lawsuit, "Real Costs"

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    On the other hand, the cost of implementing preventive compliance measures ranges from $100,000 to $300,000 annually. By preventing just one lawsuit, you can recoup 10 to 20 years’ worth of investment costs.

    Common Mistakes vs. Recommended Approaches

    ▼ Image ▼

    Assess Your Company’s Risks Now ： 10-Question Checklist

    For Executives with U.S. Subsidiaries ・ To the CFO: Please answer the following questions.

    Hiring ・ Evaluation

    During job interviews, we do not ask about family status ・ age ・ or whether the candidate has a disability

    Performance evaluation criteria are documented, and the same standards are applied to all employees

    Promotion data is regularly analyzed by race ・ and gender

    Wages ・ and working hours

    An attorney reviews the exempt classification of all employees

    We are aware of state-by-state minimum wages ・ and meal break requirements

    Harassment ・ Complaint Handling

    Conducts harassment prevention training at least once a year ・ Keeps records

    A channel for filing complaints with someone other than a supervisor exists

    Dismissal of a complainant within 6 months ・ Not demoted

    Dismissal ・ Layoff a>
    PIP prior to termination （ Performance Improvement Plan ） Record exists

    WARN Act （ 60-day advance notice （ In the case of a large number of employees ）

    Score ： 8–10 items → Low risk / 5–7 items → Action required / 4 or fewer → Seek an urgent assessment by an expert

    Summary ： “Waiting until a problem arises” is the most costly approach

    U.S. labor laws operate on a logic that runs counter to Japanese companies’ intuition. It is difficult to prove “there is no discrimination,” but it is easy to prove “there is a structure that could be perceived as discriminatory.”

    Proactive investment is the best strategy for avoiding losses after the fact.

    We recommend consulting with experts first to assess your current labor compliance status. If you think “we’re fine,” it’s well worth the effort just to verify the basis for that assumption.

    Cross-Border Specialists ｜ HGMI
    Horizon Global Management Integration （ HGMI ） supports Japanese companies expanding into the U.S. ・
    www.horizongmi.com

    #U.S.LaborLaw # Japanese Companies #Compliance #EEOC #Labor Risks

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    Original Article （ Note.com ） : https://note.com/masa_us_biz/n/n13c488352398

    • Useful info / Life / Housing
    • 2026/06/17 (Wed)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    Dallas Is Hot ！ ⚽ ️

    ⚽ ️ To everyone who watched the Japan national team’s game, thank you for your support! ！

    Did you enjoy the exciting match in Dallas? ？

    And next, the Japan national team will play again in Dallas on June 25 ！

    After watching the match held in Dallas this time, I’m sure many of you felt that “Dallas is actually a pretty amazing city.” ？

    In fact, Dallas is one of the top areas in the U.S. not only for sports but also for economic growth ・, population growth ・, and residential development.

    🏡 Newly built homes
    🏡 Spacious lots
    🏡 Investment properties
    Relocation （ Moving ）

    “I want to own a home in the U.S. someday”
    “I want to learn more about life in Texas”

    If this sounds like you, please feel free to contact me.

    I moved from Japan to Hawaii, San Diego, Seattle, and finally Texas.

    I can provide you with real, firsthand information—such as living environments, school districts, home prices, home sizes, and the unique characteristics of each area—that only someone who has actually moved here can share.

    📩 Dallas ・ For real estate information in the North Dallas area, contact Nana Williams ！

    ダラス
    • Introduction / Professional
    • 2026/06/17 (Wed)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    [A Must-Read for Business Leaders] How to Establish “Exit Criteria” for U.S. Operations—Decision-Making Criteria to Avoid Delaying “Cutting Losses”

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    When it comes to deciding whether to withdraw from U.S. operations, haven’t you been putting it off for years by saying, “Let’s wait and see a little longer”? In fact, research shows that Japanese companies take an average of two to three years longer than their Western counterparts to make the decision to withdraw their overseas subsidiaries. In this article, we present a practical, immediately applicable framework for designing exit criteria for U.S. operations, covering quantitative rules ・, exit schemes ・, and the support services offered by HGMI.

    1. Why Are Decisions to Withdraw from U.S. Operations Always Delayed?

    According to a November 2025 survey by Teikoku Databank, 13.5% of companies rated the impact of Trump’s tariffs as “very significant,” while 42.5% rated it as “somewhat significant.” More than half of Japanese companies are now being forced to reevaluate their U.S. operations （ Source ： Teikoku Databank Overseas Expansion Survey 2025 ）.

    However, only a very small fraction of companies are able to make the decision to withdraw. According to research by Waseda University, Japanese companies take an average of two to three years longer than their European and American counterparts to decide on withdrawal, and this “delay” is causing cumulative losses to balloon to the tens of billions of yen （ Source ： Barriers Faced by Japanese Companies When Withdrawing from Overseas Subsidiaries （ Waseda University ） ） .

    Three Structural Factors Delaying Withdrawal Decisions

    Information Does Not Reach Management ： The local CEO keeps saying, “We’ll turn a profit soon,” while headquarters adopts a wait-and-see attitude, saying, “We can’t gauge the situation.”

    Sunk-cost ・ bias ： —dragged down by the notion that “we’ve invested 5 billion yen over the past decade,” they lose sight of economic rationality.

    Japanese management culture focused on saving face and employment responsibility ： Cultural pressure equating withdrawal with failure clouds judgment.

    2. “Quantitative Rules” Checklist to Avoid Delaying Withdrawal Decisions

    These are sample quantitative rules that management should formalize in advance at board meetings. Please customize them to fit your company.

    ✅ Withdrawal Trigger KPI Checklist

    Three-Year Loss Rule ： Conduct a fundamental review if the U.S. business posts an operating loss for three consecutive fiscal periods
    3x Cumulative Loss Rule ： Consider withdrawal if cumulative losses exceed three times single-year revenue

    Operating Cash Flow Deficit Rule ： If operating cash flow is negative for three consecutive periods with no prospect of improvement

    Market Share Threshold ： Less than 2% in the target market even after 5 years

    Operations Halt Threshold ： A state where revenue falls below variable costs continues for more than six months

    Dependence on Parent Company ： U.S. operations continue to burn cash for

    Three-Scenario Analysis ： Does the downside case threaten the company’s overall financial resilience?

    Digima’s Recommendation “If the minimum profit target is not met even five years after establishment, restructure the business, including the possibility of withdrawal” is also worth considering （ Source ： Reasons for withdrawing from overseas operations （ Timing ） is ？ （ Digima ） ） .

    3. Comparison Table of Four Types of Withdrawal Schemes

    Compare the withdrawal schemes organized by the Yamada Consulting Group. Please compare them in terms of ・ recovery amount, ・ speed, and effort.

    ▼ Image ▼

    | Source ： United States ： Overseas Experts Discuss Business Revitalization ・ Withdrawal ・ Practical Aspects of Carve-outs （ Yamada Consulting Group ）

    The recovery amount generally follows the order: “Share Transfer > Carve-out > Business Transfer > Liquidation.” "The key is whether you can broach the subject of withdrawal while there is still a potential buyer." The longer you delay making a decision, the more the asset value erodes.

    4. Case Studies of Failure ： The Price of Postponing the Decision to Withdraw

    🚨 Case 1 ： Delayed Withdrawal from the Rice Ball Business

    Despite a consultant proposing withdrawal in the third month after entering the market, the company delayed taking action, resulting in sales falling to less than 50% of projections. By the time the company withdrew, all four newly hired full-time employees had resigned. Three Warning Signs （ Consultant’s Warning / Local Backlash / Sales Halved ）—Once all three were present, withdrawal was already the optimal solution.

    🚨 Case Study 2 ： Nitori’s Withdrawal from the U.S.

    Nitori decided to withdraw from the U.S. market due to persistent losses in its U.S. operations. Chairman Nitori characterized the withdrawal as a “reallocation of management resources” （ Source ： WWDJAPAN ） .

    What these cases have in common is that attention was focused solely on “shutting down the business,” while the perspective of **“transferring the accumulated assets to others”** was lacking. In fact, the U.S. market features a massive “secondary market （ or used market ） for businesses” that exceeds the imagination of Japanese companies.

    5. “Liquidation” or “Sale”? ： Market Potential for U.S. Business Exits

    When a business meets the criteria for withdrawal, the first option to consider should not be liquidation, but rather “Sale （ Exit ）.” In the U.S., business succession and M&A for small and medium-sized enterprises are extremely active, with liquidity that is incomparable to that in Japan.

    The Size and Demand of the U.S. M&A Market

    A Huge Market ： The number of M&A deals involving private U.S. companies A transactions in the U.S. range from approximately 15,000 to 20,000 per year, and demand is also strong for small-scale carve-out deals （ and the sale of business units ）.

    Why Even “Failing Businesses” Find Buyers ： Even if a business is operating at a loss, there are local competitors and investors who highly value its “existing customer list” “licenses,” “established supply chains,” and **“local brand recognition （ digital assets ）”**.

    Case Studies of Utilizing “M&A Experts” to Maximize Value

    There is a growing number of cases where bringing in experts early on has transformed a simple withdrawal into a “strategic sale.”

    Case A （ Digital ・ Transformation ） ： When selling a underperforming retail business, the company quantified the performance of its social media accounts and engagement with followers. By packaging the business not as a mere liquidation of assets but as a **“marketing channel to the U.S. market”**, a local company acquired it for three times the initial liquidation estimate.

    Case B （ Strategic Carve-out ） ： When spinning off a loss-making manufacturing division, the company used social media marketing to demonstrate the brand’s continued vitality. By demonstrating to potential buyers that “the customer acquisition infrastructure is already in place,” the company successfully gained the upper hand in negotiations.

    The value of a business lies not only in financial statements （ P/L ）, but also in ** “points of contact with the market （ and accumulated expertise in social media and digital marketing ）”**. Simply refining these areas makes it possible not only to recoup exit costs but also to generate cash for future investments.

    6. WARN Act ・ Tax ・ Key Considerations for Stakeholder Engagement

    U.S. WARN Act ： 60-Day Notice Prior to Layoffs

    Companies employing 100 or more people are required to provide 60 days’ notice when laying off 50 or more employees. In some states, this period is extended to 90 days. Please ensure a buffer of at least 90 days in your withdrawal schedule. In particular, in the case of the aforementioned sale schemes （—such as stock transfers or business transfers ）—structuring the transaction to preserve employment has the advantage of lowering the hurdles under the WARN Act and enabling a smooth business succession.

    Tax optimization to improve the effective tax rate by 10 to 20 points

    Utilizing the Japan-U.S. Tax Treaty

    Addressing anti-tax haven tax measures

    Utilizing Tax Losses

    Optimizing the Timing of Investment Loss Recognition

    Stakeholder Relations

    Employees 6a> Separation Agreement （ Lump-Sum Severance Payment + COBRA + Release of Claims ）

    Business Partners ： NDAs, Outstanding Liabilities, Returns ・ Resolution of Warranty Liabilities

    Customers ： Introduction of the Successor, Specifying the Party Assuming Warranty Obligations

    7. 5 Actions You Can Take Starting Tomorrow

    Map the current U.S. business Mapping Current U.S. Operations to the Four Quadrants of “Growth Potential × and Profitability”

    Formalize 3–5 Exit Trigger KPIs at the Board of Directors Meeting

    Conduct a preliminary valuation to determine “how much the business would be worth if sold now ？ ” and consider “refinement （ and social media/brand restructuring ） ” to enhance value

    Exit ・ Estimate exit costs and expected recovery amounts on a quarterly basis

    Introduce an external, objective perspective as a “Discussion ・ Partner”

    Conclusion

    It is precisely because there are exit criteria that we can boldly take risks. Furthermore, by always keeping “sale” as an option for the exit strategy, management flexibility increases dramatically.

    Withdrawal is not a defeat; it is a “strategic reset” that passes assets on to the next phase.

    HGMI provides end-to-end support for the transformation of your U.S. operations—from entry strategies and the design of exit criteria to the redefinition of business value and the execution of divestitures. Why not start by assessing the “hidden asset value” of your company’s U.S. operations? Please feel free to contact us for a consultation.

    Cross-Border Specialists ｜ HGMI
    Horizon Global Management Integration （ HGMI ） supports Japanese companies expanding into the U.S. ・
    www.horizongmi.com

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    Original Article （ Note.com ） : https://note.com/masa_us_biz/n/n923c0b315bbe

    • Introduction / Professional
    • 2026/06/16 (Tue)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    There’s a Smarter Choice Than “Local Hiring”—The Strategy of Outsourcing Internal Audits for U.S. Subsidiaries

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    If you’re considering “hiring dedicated staff” to address governance issues in your U.S. operations, there’s a method that offers a higher ROI. We’ll explain “strategic outsourcing,” which delivers both cost savings and objectivity.

    Do you have concerns like these? ？

    “Our U.S. business is growing, but local governance is a black box.”

    “We want to hire an internal auditor locally, but salary levels are too high to make it cost-effective.”

    “Even if we send someone from Japan, language and regulatory barriers prevent them from conducting effective audits.”

    This isn’t just about one specific company; it’s the “dilemma of securing specialized talent versus cost” that CFOs at mid-sized ・ startups expanding into the U.S. commonly face.

    As a result, many companies find themselves stuck between two options: “hire a dedicated local employee” or “do nothing.” But there is a third option.

    Why is the “do-it-yourself” approach risky right now?

    Labor costs are exceeding expectations

    If you hire a full-time senior internal auditor in the U.S., it’s not uncommon for the total annual cost—including social insurance ・ and benefits—to reach tens of millions of yen. For startups and mid-sized companies, continuing to shoulder these fixed costs undermines their business agility.

    The complexity of legal and regulatory requirements means that “a single dedicated staff member”

    ▼ Image ▼

    A shift toward a strategic function is necessary

    There is no “all-around dedicated staff member” capable of handling all of these issues does not exist. Even if such a person did exist, the cost would be astronomical.

    About 1/ 4 of accounting fraud occurs at overseas subsidiaries

    About one-quarter of recent accounting fraud cases stem from overseas subsidiaries （ According to a survey by DeQuest ） . In reality, Japanese headquarters conduct internal audits of their overseas subsidiaries “once every 3 to 5 years, lasting only a few days.” At this frequency, neither prevention nor early detection is effective.

    The world is moving toward “outsourcing”

    The U.S. market is the world’s largest, accounting for approximately 38% of global demand for internal audit outsourcing. And right now, this market is expanding explosively.

    The reason is clear.

    Rising labor costs for specialized professionals have reduced the ROI of full-time employment

    Increasing regulatory complexity has in-house “generalists” can no longer handle the workload

    The widespread adoption of remote work has lowered the barriers to using external experts

    AI and data analytics tools have continuous monitoring has become a practical reality

    This same trend is accelerating in Japan as well. Amid a severe labor shortage and increasingly complex J-SOX compliance requirements, the shift toward outsourcing is gaining momentum.

    Three Benefits of Outsourcing

    ① Converting fixed costs to variable costs

    Image ▼

    A system that allows you to utilize resources “only when and as much as needed” enhances management agility.

    ② An “outsider’s perspective” that cannot be found within the company

    Internally recruited auditors have structural limitations. Relationships with superiors ・ and colleagues, concerns about promotions, and office politics—these all hinder objective auditing.

    A team of external experts is free from these constraints. They can highlight risks of fraud and operational efficiency issues without being influenced by internal dynamics.

    ③ Achieving “visibility into headquarters”

    The biggest concern CFOs have about U.S. subsidiaries—the “black box” feeling of not knowing what is happening.

    Continuous monitoring established by an external team （ Monthly data screening ・ KPI dashboards ・ Quarterly reports ） make the on-the-ground situation becomes visible from Japan. A control environment that makes physical distance feel irrelevant serves as the foundation for proactive management.

    How to Implement the “Three Lines of Defense” Through Outsourcing

    The global-standard “Three Lines of Defense” model can only be realized by mid-sized ・ startups when combined with outsourcing.

    First Line of Defense ： Business Units （ Managed by Local Teams ）
    → Policies ・ External experts assist in establishing approval workflows

    Second Line of Defense ： Compliance Function （ Partial outsourcing is possible ） a> → FCPA compliance ・ Whistleblower program ・ Outsourcing training is effective

    Third line of defense ： Internal Audit （ Full outsourcing yields the highest ROI ）
    → Outsource complete independence and advanced expertise

    You can do it right now ： Governance Emergency Checklist

    Please check the following items.

    Risk Assessment

    On-site inspections have been conducted within the last year

    FCPA compliance policy is documented

    The internal whistleblower system is available in English

    Hiring of a local CFO ・ Headquarters is involved in the evaluation

    Monitoring

    Headquarters can review monthly financial data in real time

    A system is in place to detect unusual transactions
    IT Environment （ Cloud ・ SaaS ） Security audits are conducted

    Board of Directors ・ Regular reports are submitted to the Audit Committee

    4 or fewer checks ： This is a high-priority situation. We strongly recommend consulting an expert immediately.

    5–6 checkmarks ： The foundation is taking shape, but there are still some risk areas that need attention.

    7–8 checkmarks ： Your framework is close to global standards. Continue to make improvements.

    Summary

    Internal auditing is not merely a “checklist task.” It is an “investment” designed to proactively identify and mitigate management risks and accelerate business growth.

    The costs associated with the “in-house” approach ・ CFOs who recognize the limitations of expertise ・ and objectivity are shifting toward strategic outsourcing.

    Let’s work together to build the governance structure best suited to your company’s growth phase. ？

    Cross -Border Specialists ｜ HGMI
    Horizon Global Management Integration （ HGMI ） supports Japanese companies expanding into the U.S. ・
    www.horizongmi.com

    #InternalAudit # Overseas Expansion #U.S. Operations #Corporate Governance #Risk Management #Business Management #HGMI

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    Original Article （ Note.com ） : https://note.com/masa_us_biz/n/n1e3b1609415e

    • Introduction / Professional
    • 2026/06/16 (Tue)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    Why Can't Japanese Companies Succeed Overseas? ？ The Cruel Truth Revealed by the "Numbers": 33% in Thailand and 71% in the U.S.

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    “We’ve already left it up to the local offices”—though they say this, the reality is that all important decisions are made in a conference room in Tokyo. Many overseas subsidiaries of Japanese companies have fallen into this "illusion of delegation". The result is a brain drain of talented local personnel, lost opportunities due to delayed decision-making, and ultimately, the tragedy of withdrawal. Today, we will thoroughly dissect this issue using data and case studies.

    First, I want you to take a hard look at the actual data

    The shocking figure: “71% Japanese CEOs”

    71% of CEOs at Japanese companies’ overseas subsidiaries are Japanese （ According to a survey by the Japan Association of Overseas Enterprises ） . Even in developed markets such as the U.S. and Europe, this structure remains largely unchanged.

    You might think, “Well, if 29% of CEOs are locals, then surely those companies are well on their way to localization ？ .” However, when asked what problems companies with local CEOs had experienced, 72% cited “communication with headquarters” as the biggest issue.

    In other words, even if a local national is placed at the top, as long as decision-making authority remains in Japan, that person is nothing more than a "nominal leader". This is the reality of authority delegation. Localization isn’t just about replacing the CEO with a local. It’s about rewriting the decision-making process.

    The Gap with Western Companies—The “33% vs. 65%” Revealed in Thailand

    A survey conducted by the Research Institute of Economy, Trade and Industry （ RIETI ） of 246 companies operating in Thailand revealed that while the localization rate for senior management positions was 65% at Western companies, Japanese automotive companies stood at only 33%.

    This trend is also evident in the United States. While Western global companies entrust local executives with everything from strategic planning to budget execution, Japanese companies continue to operate under a structure where “local executives make proposals, but decisions are made by the Japanese headquarters.”

    The double whammy of “wage increases and talent drain”

    In September 2024, JETRO surveyed 1,826 Japanese companies in North America, including those based in the U.S. （ (774 valid responses ）). The results showed that the top management challenge for Japanese companies in the U.S. was “rising employee wage levels” （ at 53.2% ）, marking the third consecutive year it has topped the list （ Source ： JETRO “FY2024 Survey on the Status of Japanese Companies Operating Overseas: North America Edition” ）.

    Furthermore, 68.4% of companies cited employee retention as a challenge, while 63.2% cited recruitment as a challenge.

    These figures reveal the reality that salary issues and talent drain are occurring simultaneously. Talented employees leave because authority isn’t delegated, recruitment ・ and training costs balloon, the burden on remaining staff increases, and retention rates worsen—the fundamental solution to breaking this vicious cycle is genuine delegation of authority.

    “Japan Desk Syndrome”: The Diagnosis of Organizational Collapse

    What Is “Japan Desk Syndrome”?

    An Analysis by the Global Leadership Institute “Japan Deskification” refers to a state in which all critical communication within a local subsidiary cannot be completed without going through Japanese expatriate employees.

    Whether it’s approving documents, responding to customers, making hiring decisions, or executing budgets—nothing moves forward without first going through the process of “checking with the expatriate and, if necessary, consulting headquarters.”

    From the outside, the organization appears to be functioning. However, local staff are excluded from decision-making, and the organization’s capacity for autonomy is virtually zero. The moment the expatriate returns to headquarters, the local subsidiary ceases to function.

    Three Losses Resulting from the “Japan Desk” Model

    ① Information Distortion

    Real-World Local Information a> Customer feedback ・ Competitor trends ・ The hiring market ・ Regulatory changes ） are translated ・ and summarized by Japanese expatriates before reaching headquarters. Information is inevitably distorted during this process. Headquarters makes decisions based on this "manipulated reality", and those decisions further exacerbate local problems—a vicious cycle of information degradation.

    ② Deprivation of growth opportunities for local talent

    Expatriates conduct important negotiations, while headquarters makes the difficult decisions. Five or ten years later, many executives lament that “we haven’t developed talented local personnel,” but the root cause lies in the organizational structure itself, which failed to provide opportunities for growth.

    ③ Declining Competitiveness in Recruitment

    Reputations such as “That Japanese company has no authority” or “In the end, everything is decided in Tokyo” spread surprisingly quickly through LinkedIn. This is because, for Japanese companies in the U.S., “career prospects” and “involvement in decision-making” are sources of recruitment competitiveness that are just as important as—or even more important than—salary.

    The difference in decision-making speed—“We give up from the start when faced with weekly response deadlines”

    There’s a phrase I often hear from expatriate employees. “Even if a business partner asks for a response by the end of this week, our headquarters’ regular meeting isn’t until next week. It takes time to seek special approval for every single request, and it might get rejected anyway. We often give up from the start.”

    In U.S. business, it’s not uncommon for decision-making deadlines to be set in 24- to 72-hour increments. Let me cite three examples.

    Recruitment Failure ： A top candidate says, “I need an answer within a week.” The hiring decision requires approval from headquarters’ HR department, which takes at least two weeks. When we contacted the candidate a week later to say “approval has been granted,” they had already accepted an offer from a competitor.

    Lost Business Deal ： A customer said, “If you can give me a price quote by the end of this week, I can issue a purchase order.” However, pricing authority lies with headquarters. Approval was finally obtained at the start of the following week, but the customer had already chosen a competitor’s product.

    Lost Investment Opportunity ： While considering an investment opportunity in a startup, six months to a year passed, and the stock price tripled. An expatriate employee there says, “There’s no end to cases where we give up from the very beginning.” （ Source: ： Diamond ・ Online ）.

    These are not “potential tragedies,” but rather “routine missed opportunities” that are repeatedly occurring at the local subsidiaries of Japanese companies.

    “Patterns of Design Flaws” Learned from the Failures of Three Companies

    Pattern 1 ： A “expensive messenger pigeon” that caused hundreds of millions of yen in losses

    An IT company listed on the Tokyo Stock Exchange Prime Market hired an American CEO—who had experience leading the IT division of a Fortune 500 company—at an annual salary of over $300,000. However, the company’s hiring policy required head office approval for hires with an annual salary exceeding 3 people’s combined salaries; contracts worth 5 million yen or more required board approval; and strategic partnerships required “approval from the Legal ・, Finance ・, and Business divisions.”

    The CEO stepped down after 15 months. In an internal memo, he wrote: “Every week, while waiting for approval from headquarters, I watch as our competitors make decisions that week. What is expected of me is not leadership, but to be a representative in Tokyo.”

    It took eight months to find a successor. When combined with the opportunity cost during the leadership vacuum and the hiring costs, the cost of this design flaw amounted to hundreds of millions of yen.

    Pattern 2 ： Numbers were met, but the substance was hollow

    A major consumer goods manufacturer launched a “Localization Promotion Project” and and raised the proportion of local executives from 40% to 68% over three years. The numerical target was "achieved".

    However, critical communication with headquarters continued to be conducted in Japanese, and key agenda items for management meetings were distributed in Japanese documents. Only three local executives could read Japanese. There were repeated instances where strategic changes were communicated after the fact as “already decided matters.”

    In 2024, the North American subsidiary fell significantly short of its performance targets. What had been implemented was merely the “form” of localization, not its “substance.”

    Pattern 3 ： M A’s strengths vanished after their authority was stripped away

    A mid-sized U.S. manufacturer acquired by a Japanese manufacturing company for approximately 20 billion yen. The purpose of the acquisition was to “leverage local know-how and customer networks.” However, after the acquisition, the Japanese headquarters’ ・ approval system was applied as-is, resulting in all three founding members leaving the company within 18 months. Of the seven major customers who had built trusting relationships with them, four reduced their transaction volume by more than half within two years.

    The know-how and customer network—which were supposed to be the “purpose of the acquisition”—vanished within three years due to the revocation of authority.

    What Sets Companies Apart Where “Genuine Delegation of Authority” Works?

    Kikkoman ： “75% in North America”—Achieved by the Local Team

    North America accounts for 75% of Kikkoman’s overseas sales. The marketing strategy to have U.S. consumers accept soy sauce as a “sauce for meat dishes” was not designed by the Japanese headquarters, but was developed by an American team with a deep understanding of the local market, who focused on Texas steakhouse culture.

    This strategy would never have emerged if headquarters had micromanaged the project based on the preconception that “soy sauce is for Japanese cuisine.” “Genuine delegation of authority” to the local team led to average annual growth of over 6% and the establishment of the brand in North America.

    Suzuki ： took 40 years to “Gradual Building of Trust”

    Suzuki boasts a market share of approximately 47% in India’s passenger car market. This success, which began in 1983, was not achieved by “delegating everything at once.” While systematically transferring Japanese manufacturing know-how and the philosophy of quality control to Indian staff, the company gradually expanded the areas where local employees could make autonomous decisions.

    A balance between shared values and flexibility in implementation—this balance bore fruit 40 years later in the form of a 47% market share.

    Evidence from academic research

    Taylor Francis’s study, published in an international academic journal （ covering 4,662 overseas subsidiaries of Japanese companies ）, revealed that in developed markets such as the United States, localization has a statistically significant positive correlation with subsidiary performance. This is not merely a "gut feeling" but an empirical finding based on large-scale data.

    3 Phases × 5 Pillars— —A Design Framework for Delegation of Authority

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    Timeline of the 3 Phases a>
    Phase 1 （ 0 –12 months ） ： Building a Foundation of Trust

    Inviting local executives to participate as observers in headquarters management meetings

    policies in English on a regular basis and ensure that the local team so that local teams can understand the “why”

    Delegate minor decision-making （ event planning ・ recruitment ad design, etc. ） entirely to local teams

    Formalize the “right to make recommendations” for local executives

    Phase 2 （ 12 –24 months ） ： Delegation of operational authority

    Hiring ・ Dismissal （ Within certain conditions a> to the head of the local subsidiary

    Contract execution （ Revise regulations to allow transactions below a certain amount ） to be finalized with local approval
    a> Marketing ・ Expand local authority to execute sales budgets

    Transition to a system of reporting to headquarters via monthly summaries

    Phase 3 24 months and beyond ） ： Establishment of strategic autonomy

    Local offices take the lead in formulating medium-term business plans, with headquarters providing approval ・ and only getting involved in revisions

    Headquarters transitions to governance through annual KPI reviews and financial reporting

    Appoint local experts to the local board of directors

    Set a target ratio for local executives and shift the roles of Japanese expatriates

    Address “Management Concerns”

    Q ： Won’t fraud occur if we delegate authority? ？
    A ： Fraud most likely to occur in situations where “headquarters believes it has control, but information is actually opaque.” By implementing a “combination” of transparent performance management based on KPIs, regular internal audits, and visual financial reporting, you can strengthen governance while simultaneously expanding authority. Delegation of authority and internal controls are not conflicting concepts.

    Q ： Isn’t the cultural difference too great to delegate authority? ？
    A ： The key is to consider the sharing of values and flexibility in how they are put into practice. After accurately communicating the company’s core values—such as a commitment to quality ・, integrity ・, and a long-term perspective—to local staff, we grant them the freedom to put these values into practice in a way that suits the local culture. Headquarters determines “what we value,” while local teams decide “how to achieve it.”

    Q ： As localization progresses, won’t the role of expatriate employees become obsolete? ？
    A ： It is more accurate to say that their roles will change. They will transition from being “managers ・ and decision-makers” to “learners who leverage the environment for global talent development ・ and cultural bridge-builders.” It is precisely the experience of working on an equal footing with talented local personnel that enriches the expatriates’ own global careers.

    Summary ： Rethinking the “Cost of Not Localizing”

    Many executives are reluctant to take the step of delegating authority. However, I would like them to turn the question around.

    How great is the “risk of not localizing”?

    Talented local employees leave because “they see no career prospects”

    Slow decision-making leads to lost business deals ・, failed hiring ・, and missed investment opportunities

    The leads to the exhaustion of Japanese executives

    Unable to fully grasp changes in local markets, resulting in competitors taking over the market

    In fiscal year 2021 alone, 792 companies withdrew from overseas operations （—the highest number in the past 10 years ）
    6a> According to a JETRO survey, 66.2% of Japanese companies operating in the U.S. still expect to turn a profit. The appeal of the U.S. market is genuine. The issue is not “whether to go,” but “how to design the organization.”

    Delegating authority is achieved through a combination of “commitment” and “design.” HGMI provides one-stop support for both.

    Cross-Border Specialists ｜ HGMI
    Horizon Global Management Integration （ HGMI ） supports Japanese companies expanding into the U.S. ・
    www.horizongmi.com

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    Original Article （ Note.com ） : https://note.com/masa_us_biz/n/n9b8916799219

    • Introduction / Professional
    • 2026/06/15 (Mon)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    The Real Reason Behind Withdrawals from the U.S.: Back-Office Burden—60% of Companies Discuss the "Operational Barriers" and How to Overcome Them

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    What You'll Learn in This Article
    - Over 60% of Companies Expanding into the U.S. Withdraw ・ The "Real Reasons" Behind Considerations to Downsize
    - Back Office ・ Why Is the Practical Burden of Regulatory Compliance So Severe?
    - The Big Picture of the “7 Major Costs” Caused by Gaps in Japanese and U.S. Legal Systems
    - Concrete Lessons Learned from 3 Failure Cases: 5 Practical Approaches to Fundamentally Eliminate Back-Office Burdens
    - How to Overcome "Operational Barriers" with HGMI’s End-to-End Support

    Shocking Survey Results—60.4% of Withdrawal Reasons Cited "Increased Operational Burden"

    “We’re confident in our product’s strength. We’re getting strong local interest. Yet, for some reason, we can’t keep cash on hand, and our expatriate staff is exhausted … … .” The true cause of this “invisible bleeding” lies not in strategic errors, but in the back office.

    COEL, Inc. （ Operator of the U.S. online assistant “Emily. Assistant” ） conducted "Survey on the Reality of Expanding into the U.S." （ targeting 111 Japanese corporate executives ・ officers ・ and staff members with experience in U.S. operations ） revealed some shocking facts.

    📊 Key Survey Figures (Source: ： PRTIMES)

    Withdrawal ・ Downsizing ・ Top reasons for considering a change in plans ： Back office ・ Increased operational burden due to regulatory compliance and other factors 60.4%

    Percentage citing changes in the external environment ： A mere 12.6%

    Approximately 80% of companies spend 10% or more of their working hours on ancillary tasks

    In over 20% of companies, 30% or more of working hours are spent on back-office tasks

    Percentage of respondents who said "sales ・ negotiations are under pressure" ： 55.0%

    In other words, it is not because they lost to competitors, nor because the market has disappeared. Accounting, HR, payroll, visa processing, tax filings—the “barriers of administrative work” that have piled up behind the scenes are putting pressure on companies’ U.S. operations.

    Why do Japanese companies in particular struggle with this issue?

    Back office ・ There is a specific reason why the increasing burden of practical tasks, such as compliance with laws and regulations, is particularly severe for Japanese companies. It is the fundamental difference between the Japanese and U.S. legal systems.

    Tax Aspects ： The U.S. has a two-tier structure of federal and state taxes. Different filing rules apply in each state where a business operates, and U.S. corporations with 25% or more foreign ownership are also subject to reporting obligations to the IRS （ EY Japan "2024 U.S. Accounting ・ Audit ・ Tax Guide" ）.

    Employment ・ Labor ： In addition to federal law, U.S. employment law is subject to state-specific regulations. California is particularly strict, and the risk of class-action lawsuits in the event of a violation is a real threat.

    Visas ： Obtaining long-term work visas for expatriates is becoming more difficult every year, and there is no end to cases where “even though the company has been registered, business cannot begin because visas cannot be obtained.”

    Sales Tax ： Since a 2018 Supreme Court ruling, an economic nexus can arise even without a physical presence, potentially creating a filing obligation in 45 states plus the District of Columbia.

    The "7 Major Back-Office Costs" That Are Often Overlooked

    There are seven cost items related to the back office of a U.S. subsidiary that should be accurately identified before entering the market.

    ✅ Cost 1 ： Payroll （ Payroll ） Multiple taxes at the federal ・ state ・ and municipal levels . Quarterly reporting （ Form 941 ） and issuing W-2 forms are also mandatory. Professional service fees range from several hundred thousand to several million yen annually, depending on the company’s size.

    ✅ Cost 2 ： Corporate Tax Filing （ Federal & State Tax ） In addition to federal taxes, state tax returns are required for each state where the company operates. When operating in multiple states, "apportionment" calculations are required, and CPA fees can range from 1 million to 5 million yen or more per year.

    ✅ Cost 3 ： Sales Tax （ Sales Tax ） Compliance: Tax rates vary by state ・ Tax-exempt items Filing deadlines vary by state. This poses a particularly serious risk for rapidly growing e-commerce companies.

    ✅ Cost 4 ： Labor Law Compliance: Development （ and updating of ） employment policies and ・ handbooks, I-9 form management, and compliance with overtime ・ and break regulations. The risk of litigation in the event of a violation can run into tens of millions of yen.

    ✅ Cost 5 ： Visa ・ Immigration Law Compliance: Acquisition ・ Renewal Fees （ Per case 500,000–2,000,000 yen ） ＋ Immigration attorney advisory fees. The risk of business suspension due to visa expiration is also a realistic concern.

    ✅ Cost 6 ： Annual Report ・ Registration maintenance fees. Submission of annual reports every year. ・ Failure to pay franchise tax may result in the risk of losing corporate status （ Good Standing ）.

    ✅ Cost 7 ： Internal Controls ・ IRS Reporting Obligations Form 5472 （ Foreign-Owned Corporation Information Return . Penalties for non-compliance start at $25,000 per violation （ (approx. 3.5 million yen ）).

    📊 All told, ： even for a medium-sized U.S. subsidiary （ with 10 to 30 employees ）, annual back-office costs easily exceed 10 million yen. If penalties or litigation arise, the costs can balloon to an entirely different order of magnitude.

    Three Case Studies of Failure—What’s Happening on the Ground

    Case Studies of Failure ① ： Manufacturing Company A: “The Entire Accounting Staff Was Wiped Out”

    Precision equipment manufacturer A （ with 300 employees ） established a local subsidiary in Texas, USA. Although its products were well-received, accounting staff began resigning in succession three years later. The company failed to secure replacements, resulting in delayed state tax filings and subsequent penalties. The submission of the Annual Report was also delayed, leading to a temporary loss of Good Standing. This strained relationships with major distributors, ultimately forcing the company to downsize.

    Lessons Learned ： Accounting ・ and tax systems in the U.S. must be designed before entering the market. Be sure to incorporate a backup system.

    Case Study ② ： IT Company B, whose business launch was delayed by a year and a half due to visa issues

    SaaS Company B attempted to transfer a talented sales manager on an L-1 visa after establishing a U.S. subsidiary, but the review process dragged on. While it took 18 months to obtain the visa, the company continuously lost business deals to competitors. “We underestimated the visa process. If only we’d had that year and a half, just think of how much we could have accomplished”—the CEO’s words carry significant weight.

    Lesson ： Visa strategy is central to any market entry plan. Compare and evaluate multiple visa options and collaborate with a specialized immigration attorney.

    Case Study: Failure ③ ： D2C Company C, Whose Sales Stalled While Struggling with Compliance

    Fashion E-commerce Company Company C experienced rapid growth thanks to successful social media marketing. However, as sales increased, its sales tax filing obligations expanded from 3 states to 12. With only two staff members, they could not handle the workload. As a result, the staff responsible for new product planning ・ and ad operations—tasks they should have been focusing on—were pulled into compliance work, causing marketing initiatives to stall.

    Lessons Learned ： The increasing complexity of compliance requirements that comes with growth is predictable. Design a scalable back-office structure from the early stages.

    Solution—5 Practical Approaches

    ① Before entering the market, Treat “Back-Office Design” as Equally Important as the Business Plan

    Accounting ・ Tax Structure, Employment ・ Payroll Structure, Visa Strategy, and Compliance Calendar must be finalized before entering the market. This alone transforms the majority of “unforeseen” issues into “foreseen” ones.

    ② “Preliminary Agreements” with a network of experts "Pre-Contracts"

    Enter into retainer agreements with lawyers ・, accountants ・, and immigration specialists before problems arise. Having a system in place to quickly connect with the right experts in an emergency prevents situations from escalating.

    ③ Back-office operations

    Payroll （ ADP/Paycheck, etc. ） , bookkeeping ・ accounting （ U.S. accounting firms with Japanese-speaking staff ） , HR ・ labor management （ and PEO services ）. Bilingual (Japanese-English) online assistant services are also a viable option.

    ④ Establishing a system for "information sharing" with the Japanese headquarters

    Standardizing monthly reports, sharing cloud-based accounting tools, and clarifying decision-making authority （ Distinguishing between local judgment and head office approval ）. This will resolve the issue of “coordination between the Japanese headquarters and local offices ・ delays in decision-making （ 43.2% ） .”

    ⑤ Phased scaling up and designing an “exit strategy”

    After validating the business model at the smallest possible scale, proceed with in-house development in phases. As PwC Japan points out, “it may take several years to complete liquidation,” so exit options should be incorporated into the design from the outset.

    HGMI’s End-to-End Support—Extending to Back-Office Operations

    HGMI （ Horizon Global Management Integration ） is a professional firm that provides hands-on, end-to-end support for Japanese companies entering the U.S. market, ranging from business strategy formulation to back-office setup ・ and operational management.

    Pre-entry Phase ： Comprehensive support for establishing a local subsidiary, including back-office design, introduction to our network of experts, and estimation of operational costs

    Post-entry phase ： Establishment of local management systems, design of information sharing with the Japanese headquarters, and compliance setup ・ Audits, Business Restructuring

    Exit Strategy Phase ： Downsizing ・ Withdrawal ・ Design of sale scenarios, Liquidation of local subsidiaries ・ M&A procedure support

    “Struggling with back-office operations,” “Local subsidiary management is getting out of hand,” “Unsure whether to continue or withdraw”—start with a free consultation.

    👉 Click here for a free consultation with HGMI

    Cross -Border Specialists ｜ HGMI
    Horizon Global Management Integration （ HGMI ） supports Japanese companies expanding into the U.S. ・
    www.horizongmi. com

    Summary

    Back Office ・ The increasing practical burden of regulatory compliance and other matters is a more serious challenge for companies expanding into the U.S. than “market failure.” However, with the right systems in place and collaboration with experts, these challenges can certainly be overcome.

    JETRO According to the “FY2025 Survey on Japanese Companies Operating Overseas （ North America Edition ）,” approximately 50% of Japanese companies in the U.S. responded that they “expect to expand their business within the next one to two years.” The appeal of the U.S. market is genuine. Overcoming the “back-office barrier” and creating an environment where companies can focus on their core business growth is the most critical challenge for success in the U.S.

    #ExpandingToTheUS #BackOffice #RegulatoryCompliance #OperationalBurden #LocalOverseasLaws

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    Original Article （ Note.com ） : https://note.com/masa_us_biz/n/n1cf73f1f3f9a

    • Signature service / Restaurant / Gourmet
    • 2026/06/15 (Mon)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    Ichigoh Ramen Lounge We serve one bowl of ramen with love and passion.

    Since our establishment in 2019, we at Deep Ellum, TX have been in pursuit of the "real deal" Sapporo Ramen.

    Our homemade chicken broth takes time to prepare, our chashu pork is melt-in-your-mouth tender, and our seasoned eggs are infused with a unique flavor.

    Everything is handmade, and we put our "heart" into each and every bowl.

    \Even the noodles have the soul of Sapporo/

    The noodles are imported directly from Sapporo and aged in a traditional cedar box.
    Deep aroma and firmness that cannot be tasted anywhere else.

    Authentic ・ The taste of Sapporo in Texas.
    Your ramen experience will change from here.

    • Introduction / Education / Lesson
    • 2026/06/15 (Mon)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    ！ ] Children who may return to Japan are welcome to study at the Dallas Supplementary School ✍.

    The Dallas Supplementary School provides education for children returning to Japan on Saturdays and transitioning to a Japanese education without stress.

    The textbooks we use are those designated by the Ministry of Education, so there are no problems with differences in learning styles.

    In addition to classes, we also organize events such as athletic meets and student councils, so even children who are not good at studying can enjoy attending our school.

    Teachers will carefully check and follow up on homework and class attitudes.

    The program covers kindergarten through high school, so you can enroll your child at any time.

    Please contact us for hours and more information.

    Tours and trials are also available📣.

    • Introduction / Professional
    • 2026/06/12 (Fri)

    This text has been translated by auto-translation. There may be a slight difference between the original text and the translation. (Original Language: 日本語)

    "The strategy was perfect. But no one executed it"—Why hands-on support is essential for overseas operations

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    What You'll Learn in This Article
    - Three Fundamental Reasons Why "One-Off Consulting" Doesn't Work for Overseas Operations
    - The Decisive Difference Between "Side-by-Side Support" and Traditional Consulting
    - U.S. Business ・ Cases Where Side-by-Side Support Is Most Effective in PMI
    - 5 Checkpoints for Identifying Genuine Side-by-Side Support
    - 3 Actions You Can Take Right Now

    *This article is provided by HGMI, a firm specializing in U.S. business support, and serves both to share insights based on practical experience and to promote our services.

    “We hired a consultant and received a great report. But a year later, nothing had changed.”

    It is not uncommon to hear comments like this from executives of Japanese companies with operations in the U.S. Even though they paid high fees and received a thick report—three months after the presentation, that report is gathering dust on a shelf.

    This is the reality that companies relying on “one-off consulting” often face.

    On the other hand, “accompaniment-style management consulting” has been rapidly gaining attention in recent years. This approach involves continuous engagement not only during the strategy formulation phase but also during the execution phase, working together on-site to solve problems. The difference between this and one-off consulting becomes particularly decisive in complex projects such as entering the U.S. market or ・ PMI.

    Chapter 1 ： "Consulting ＝ One-off Reports" : Failures Caused by Misconceptions

    Three Structural Limitations of Traditional Consulting

    Limitations ① ： Execution Left to the Front Lines

    In many cases, the company receiving the report lacks the personnel capable of carrying out the implementation. For U.S. operations, for example, personnel capable of directing local staff in English are needed, but it is precisely because such personnel are not available internally that the company sought outside help in the first place. After the consultants leave, the strategy hangs in limbo, with no one able to answer the question of “who will execute it and how.”

    Limitations ② ： While “answers” are provided, the “question” is left behind

    As DIAMOND Harvard ・ Business ・ Review points out, when external experts simply bring in answers, the organization becomes dependent on those answers. They will not develop the ability to identify ・ and solve problems on their own. The U.S. market changes rapidly. Organizations that only have answers that will be obsolete in six months will find themselves at a dead end.

    Limitations ③ ： The “translation cost” between strategy and execution is enormous

    “Translation” is necessary to put a strategy created by consultants into action. This "translation" involves translating abstract strategic frameworks into concrete actions. If there are no employees within the company capable of doing this, even the most excellent strategy will not work.

    The reality of "lack of execution resources" revealed by a JETRO survey

    📊 JETRO FY2024 Survey on Japanese Companies’ Overseas Business Expansion （ 3,162 companies responded ）
    - Major challenges in overseas operations ： Human resources ・ Funding ・ Lack of information resources
    - Juggling domestic and overseas duties slows down local response times
    - Percentage of Companies with Profitable Overseas Operations in FY2024 ： 65.9% （ First increase in two years ）

    In other words, many companies that hire consultants do so because they lack the resources to execute their plans. Yet, traditional consultants simply provide a “strategy” and then walk away. It is inevitable that their reports will gather dust on the shelf.

    Chapter 2 ： What is “Accompaniment Support”?—The Fundamental Difference Between “Problem-Defining” —A Fundamental Difference

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    Three Characteristics of Side-by-Side Support

    Characteristics ① ： “Joint Execution” Through PMO-Style Involvement

    In accompaniment support, consultants assume a PMO （ Project Management Office ） role. They actively participate in the client company’s project, continuously conducting weekly ・ and monthly progress reviews ・, adjusting strategies ・, and providing on-site communication support.

    Features ② ： Problem definition aimed at "internal motivation"

    To borrow the words of the DIAMOND Harvard ・ Business ・ Review, the essence of our accompanying support is "driving corporate transformation from within, rather than from outside." Rather than providing answers, we draw out the client’s own ability to identify ・ and solve problems.

    Features ③ ： The "End-to-End Model"

    Mitsubishi Research Institute explicitly states that it provides "end-to-end, full support from strategic planning in the planning phase through to execution, such as on-site operations." Major consulting firms are also shifting toward a "co-creation model" that involves them through to execution.

    Chapter 3 ： Three Patterns of Three Patterns of "One-Off Consulting Failures"

    Pattern ① ： The “Wrong Personnel Selection” Type—The Strategy Was Correct, but There Was No One to Execute It

    One of the most common causes of failure in U.S. operations is “wrong personnel selection.” If the selection of the local CEO ・ or head of operations is flawed, even the most excellent strategy will be at the mercy of that individual.

    One-off consulting does not go as far as verifying the executor after strategy formulation. With a hands-on approach, we can intervene the moment we realize during the execution phase that “this person cannot implement the strategy.”

    Pattern ② ： The “Untranslatable” Type—Japanese Strategies Fail to Reach English-Speaking Workplaces

    One of the three major common factors among companies that fail to expand into the U.S., as pointed out by Nikkei Business, is “management style issues.” Japanese-style management, with its emphasis on detailed rules, significantly lowers the motivation of American employees.

    One-off consulting does not handle this cultural translation. Only bilingual ・ and bicultural support partners can continuously bridge the “translation gap” between Japan and the U.S.

    Pattern ③ ： "Initial Assumptions Collapse" Type — Strategies Cannot Keep Up with Environmental Changes

    The U.S. market changes rapidly, and it is not uncommon for competition ・ regulations ・ and the economic environment to shift significantly within 3 to 6 months. It is commonplace for strategies formulated six months ago to no longer fit the current environment.

    The Limitations of One-Time Consulting ： Even when environmental changes occur, you cannot respond without placing a new order
    The Strengths of Ongoing Support ： Catch changes in real time and and continuously adjust strategies dynamically

    Chapter 4 ： The Critical Importance of Ongoing Support in PMI

    PMI （ M Post-M&A Integration ） is the area where the true value of on-site support is most fully realized.

    “While many consulting firms focus on strategy formulation, advice, ・ and presenting case studies from other companies, on-site accompaniment-style support prioritizes practical execution capabilities and enables PMI support that extends into the implementation phase.” （ pro-d-use.jp survey ）.

    There are three reasons why on-site support is essential in PMI ：

    PMI is a “nurturing” ： Organizational culture integration ・ Employee retention ・ System integration ・ Creating synergy requires continuous updates to initiatives on a monthly ・ and quarterly basis a>
    Early detection is the only way to prevent employee turnover ： According to an EY survey, 47% of employees leave within one year of an M&A. Only a hands-on approach allows for early detection of warning signs on the ground and timely intervention

    Unexpected problems are addressed with “experience and quick decision-making” ： There is no time to compile reports. The presence of an on-the-ground support partner who can act right now determines the success or failure of PMI

    Chapter 5 ： 5 Checkpoints for Identifying Genuine On-the-Ground Support

    The number of companies touting “coaching support” is growing, but the reality varies widely. Be wary of pseudo-coaching that amounts to nothing more than “monthly reports.”

    ✅ Checkpoint 1 ： Is there direct involvement in the execution phase?
    Is there a commitment to not only “develop a strategy” but also to “work together during the execution phase”?

    ✅ Check 2 ： Are there bilingual ・ and bicultural experts?
    For U.S. operations, both Japanese and English are required ・ Experts who understand both Japanese and American cultures are essential.

    ✅ Check 3 ： Is there an “emergency response system” in place when problems arise?
    Is the approach passive—simply asking to be contacted—or does it involve active monitoring for early detection?

    ✅ Check 4 ： Is an “exit strategy” included in the design?
    Is there an exit plan designed to ensure the client can eventually operate autonomously?

    ✅ Check 5 ： Is there “breadth” in the areas covered, and
    Strategy ・ Finance ・ Human Resources ・ Operations ・ Can cultural integration be covered comprehensively?

    Summary ： Three actions to take right now

    “Strategy only holds value once it is executed”—a partner providing ongoing support is what underpins execution.

    Action 1️⃣ Check your current consulting partner’s “level of involvement in the execution phase”
    If it’s “just briefings and reports,” it may be time to consider switching to a hands-on support model.

    Action 2️⃣ Check whether the PDCA cycle for your U.S. operations is functioning
    Are progress evaluations and strategy adjustments being conducted monthly ・ and quarterly? If not, there is a lack of implementation support.

    Action 3️⃣ Confirm whether there is a bilingual ・ bicultural “bridge” in place
    If there is a gap in the role of translating between the Japanese headquarters and the U.S. office, information asymmetry will trigger a chain of problems.

    To keep your strategy “alive.” Choosing a partner who will run alongside you through to execution is the surest step toward success in your U.S. operations.

    At HGMI, we provide end-to-end, hands-on support for Japanese companies expanding into the U.S. market. Please take advantage of our free consultation.

    Cross-Border Specialists ｜ HGMI
    Horizon Global Management Integration （ HGMI ） supports Japanese companies expanding into the U.S. ・
    www.horizongmi.com

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    Original Article （ Note.com ） : https://note.com/masa_us_biz/n/n7133569dcb08