Tokyo Type-2 security company, operating profit claim despite reported deficit

What is for sale

This is a Tokyo-based Type-2 security company whose main work is traffic control and security for construction sites. It has over 30 security guards on staff, including some with traffic control security qualifications, and has operated as a business that can run without heavy owner involvement, with the current representative only needing to be involved about once every two weeks. The seller cites lack of a successor and a wish for further company growth as reasons for selling, and wants to sell quickly.

Because this is a share sale, the buyer takes over the whole company, so its lease, licences, bank account, construction business permit and any debts transfer automatically with the shares.

What is included

• Company shares (whole corporate entity)
• 30+ security staff, including traffic control qualified guards
• Construction business licence (建設業許可)
• Existing client base of construction and construction-related firms
• Established sales relationships with construction companies
• Business operations largely self-running

Strengths (as the seller states them)

• Sells directly to construction and construction-related companies, achieving high gross margin
• Already holds a construction business licence
• Business can run without heavy owner involvement (current representative only engages roughly once every two weeks)
• Combining existing base and guard network could speed up growth in Tokyo contracts

Wrinkles a careful buyer would ask about

• Company is currently in excess debt (債務超過) and needs financial restructuring
• Operating profit is shown as a deficit (赤字), despite the listing title mentioning profit over ¥10,000,000, so figures need clarification
• Buyer is asked to have prior experience managing a security business
• Seller wants continued employment guaranteed for existing staff
• Seller wants release from personal joint guarantees (連帯保証) on company obligations, implying existing loans with personal guarantees

Paying for it

If you stay overseas. No Japanese bank will lend to a new company whose director lives abroad. The realistic stack is your own cash plus asking the owner to take part of the price over 2 to 3 years. That one question is in every Deal Pack.

If you move to Japan. On a visa that lets you run a business, Japan Finance Corporation lends up to ¥72M at about 1 to 2 percent for exactly this. Once you have a Japanese company, the government pays two-thirds of due diligence and registered-broker costs, up to about ¥8M (round 16 closes 6 Nov 2026). The company's existing bank relationship comes with it.

What this listing says. The company is currently in excess debt (debt exceeds assets) and the seller wants release from personal joint guarantees on its loans as a condition of sale; the broker charges an interim fee of 30% of the success fee (minimum ¥1,500,000 plus tax) at basic agreement stage, plus a success fee on a sliding Lehman-style scale with a minimum of ¥5,000,000.

Full rundown, with the catches: japandealflow.com/money