【Client Situation and Background】 Identifying the True Value of Being a Niche Leader

High profits and high specialization necessitate understanding the underlying structure of their strength.

P&E first conducted a detailed analysis of the company’s technical uniqueness, customer relationships, and value proposition. As a result, we identified that the value of the company’s products and services was underpinned by “sales personnel and an organization capable of engaging in discussions on an equal footing with highly specialized customers.”

This organization was expanded through internal development and referral hiring, rather than external recruitment, and was composed of a team where culture, knowledge, and trust were deeply ingrained. They commonly exhibited high levels of expertise capable of engaging in dialogue with researchers, pride in their own products, and a willingness to grow autonomously.P&E qualitatively structured this chain of intangible assets and demonstrated to the client that “high profitability is not a coincidence but a structural necessity” from both quantitative and and qualitative perspectives.

【P&E Approach】 Visualizing Value Beyond Numbers

Moving beyond quantitative data to decipher the difficulty of imitation and the organization's passion.

P&E initiated its analysis by thoroughly examining the company’s technical uniqueness, customer relationships, and value proposition. This deep dive revealed that the value of the company’s products and services was underpinned by “talented individuals and a sales organization capable of engaging in peer-level discussions with highly specialized customers.”

Crucially, this organization expanded through internal development and referral hiring, rather than relying on external recruitment. It comprised a team deeply imbued with a shared culture, extensive knowledge, and strong trust. Common among its members were a high degree of expertise enabling effective dialogue with researchers, a profound pride in their own products, and a clear commitment to autonomous growth.

P&E qualitatively articulated this interconnected chain of intangible assets, thereby demonstrating to the client from both quantitative and qualitative perspectives that “high profitability was not a mere coincidence but a structural imperative.”

【Results and Changes】 Articulating "Why This Company"—A Compelling Narrative Supporting Investment Decisions

A Multifaceted Evaluation Combining Qualitative and Quantitative Analysis to Deepen Investment Decision-Making

Through this comprehensive due diligence, clients requiring investment decisions gained insights that transcended mere numbers, uncovering the “reasons why this company is indispensable.”

• The uniqueness of its niche-top position creates a situation where “this company is the only one in the industry.”
• Not only technology, but also the human resources and organizational structure that act as “transmitters of specialized knowledge.”
• A cycle where talent recruitment and development, cultural cultivation, and specialized expertise enhancement are interconnected and difficult to replicate.

By visualizing and articulating these elements, the evaluation criteria shifted from merely “high-profit companies” to “structurally strong companies,” thereby providing clients with significant confidence in their investment decisions.

Three things that only P&E could achieve

• DD that Visualizes “Structural Strength”: Qualitative analysis that integrates positioning, human resources, and culture to structurally evaluate the difficulty of imitation.
• Interpretation of “Value Not Reflected in Numbers”: Elucidation of the underlying chain of events that generate high profit margins, rather than simply focusing on the superficial phenomenon of high profit margins.
• “Storytelling of Competitive Advantage”: Elevating the logic and language that clients can communicate to support investment decisions.