Forbes reports that Shunsaku Sagami, who is only 33 years old, has amassed a net worth of $1.9 billion, making him the youngest billionaire in Japan. His creative application of artificial intelligence (AI) in business, primarily through the M&A Research Institute, which he formed after selling a startup in 2018, accounts for many of his riches. This AI-powered mergers and acquisitions advice service connects elderly company owners with possible successors, filling a big vacuum in Japan’s corporate landscape.
Sagami drew inspiration from a personal source while founding the M&A Research Institute. In a TIME interview, he related the tale of his grandpa, who had a prosperous real estate company in Osaka. When he reached retirement age, his grandpa was forced to shut down the company since he could not find a qualified replacement. This situation is common in Japan, where the aging population and shrinking workforce present serious issues.
According to Bloomberg, Japan’s fertility rate will decline by 5.1% in 2023, posing a demographic challenge. The nation’s population is decreasing since more individuals are passing away than getting born. Princeton University sociology professor James Raymo told CNN that there is no turning back this trend. Japan’s continually low fertility rates throughout the years would mean that population decrease would continue even if couples began having more children. A diminished workforce due to this demographic transition is a significant problem for Japan’s economy.
According to a Recruit Works Institute analysis, there would be an 11 million labor shortfall by 2024, a 12% drop from 2022, according to the Japan Times. Aiming to train young people for high-skilled employment, Prime Minister Fumio Kishida has pledged ¥1 trillion ($7.6 billion) to solve this labor challenge. Furthermore, the Japanese government projected in 2011 that more than 1.25 million small business owners would be older than 70 by 2025 and have no succession plan.
An essential component of the answer is Sagami’s M&A Research Institute. His company’s AI-driven matching solution assists senior company owners in finding suitable successors for their enterprises. Surprisingly, Sagami only bills customers following a successful transaction. His strategy has worked; since the firm went public on the Tokyo Stock Exchange in 2022, it has expanded to 300 people and closes around 400 deals annually.
Despite his rapid rise to wealth and success, Sagami remains grounded. He told TIME, “The aging problem in Japan is serious, I think it is the most serious in the world.” His ambition extends beyond Japan; Sagami plans to expand internationally, aiming to apply the services developed by the M&A Research Institute to other countries facing similar demographic challenges.
Sagami’s tale serves as evidence of the ability of creative thinking to resolve challenging societal problems. In addition to giving elderly business owners a helping hand, his company helps keep Japan’s economy afloat in the face of a population decrease. Sagami’s work ethic and humility are still apparent as the share price of M&A Research Institute Holdings Inc. keeps rising. When asked about his feelings toward his wealth, he reflected, “I’m not quite sure how I feel about my wealth. But I continue to work hard to create good businesses.”
