WellBear Advises Monstarlab Holdings on Acquisition of Executive Search AI

Deal Overview

Monstarlab Holdings, Inc. (headquartered in Shibuya-ku, Tokyo; President and CEO Hiroki Inagawa) acquired 100% of the shares of Executive Search AI, Inc. (headquartered in Shibuya-ku, Tokyo; CEO and Partner Kenneth Charles Hoinsky) through a phased acquisition, bringing the company into the Monstarlab group as a consolidated subsidiary. The transaction was announced by Monstarlab Holdings on September 20, 2023.

WellBear served as the exclusive buy-side financial advisor to Monstarlab Holdings, supporting the full lifecycle of the transaction, from valuation and negotiation through due diligence oversight, contract support, and stakeholder communications, to closing. Our co-founders' prior operator experience within Monstarlab enabled a uniquely informed advisory approach, combining deep business understanding with the rigor and objectivity of an external financial advisor.

Deal Summary

• Acquirer: Monstarlab Holdings, Inc.
• Target: Executive Search AI, Inc.
• Location: Both HQs in Shibuya-ku, Tokyo
• Industry: HR Technology / Tech-Focused Direct Recruiting
• Structure: Phased Share Acquisition
• Our Role: Exclusive Buy-Side Advisor
• Announced: September 20, 2023

About Executive Search AI

Founded in 2017, Executive Search AI (ESAI) is a technology-focused talent services firm built around a proprietary direct recruiting platform that enables the company to reach high-caliber tech talent without relying on third-party recruiting platforms. ESAI has systematized the majority of its internal operations and seamlessly connected each process, enabling strong data accumulation and exceptional internal information flow. Since establishing its system and operations platform, the company has delivered over 60% average annual revenue growth over the past two years while sustaining exceptional profitability (operating margin of over 30% projected for FY ending September 2023) - a rare combination that underscores its distinctive position within HR technology. ESAI also brings particular strength in recruiting international talent, supported by a diverse and globally-minded team.

About Monstarlab Holdings

Monstarlab Holdings is a global digital consulting group operating under the mission "Unlocking Innovation Through Diversity." As of the end of August 2023, the group comprised approximately 1,500 professionals operating across 28 cities in 18 countries and regions, serving major enterprises and public-sector clients through digital consulting and product businesses (including RPA tools). The company's differentiation lies in its ability to combine diversity and geographic reach with cohesive global execution, supporting clients across the full spectrum of business transformation and digital product development needs.

Synergy

This transaction integrates the capability that most directly determines long-term competitiveness in digital consulting, the ability to attract and secure top technology talent, into the Monstarlab group as an in-house strategic capability.

As digital capability becomes increasingly central to enterprise competitiveness, the race for tech talent has intensified globally, with Japan in particular facing an accelerating shortage of skilled technology professionals. ESAI's proprietary direct recruiting platform and operations foundation are expected to strengthen both the quality and scale of talent supply across Monstarlab's digital consulting business, while also unlocking meaningful synergies through reduced external agency fees and new client-facing offerings including HR consulting and talent acquisition support.

ESAI's distinctive strength in international talent acquisition also aligns closely with Monstarlab's mission of "Unlocking Innovation Through Diversity." The combination positions the group to build a durable foundation for medium-to-long-term growth, particularly within its Japan-based digital consulting business.

Continuity

Executive Search AI will continue to operate under the leadership of CEO and Partner Kenneth Charles Hoinsky, with its brand, organization, and client and candidate networks maintained. The company's proprietary technology platform and international team culture - the core sources of its competitive advantage - will be preserved and further strengthened as part of the Monstarlab Holdings group.

"In an environment where competition for technology talent continues to intensify, the ability to attract and secure highly skilled professionals is the single most critical driver of value creation in our digital consulting business. Executive Search AI - with its internationally diverse team and operational excellence built on proprietary technology - is an exceptionally strong strategic fit with our group's mission. By welcoming ESAI into the group, we will enhance both the quality and scale of our talent base, and through HR consulting and talent acquisition support, continue to sustainably elevate the value we deliver through our digital consulting business."

- Hiroki Inagawa, President and CEO, Monstarlab Holdings, Inc.

This entry is based on publicly available information (Monstarlab Holdings press release dated September 20, 2023; WellBear press release dated September 30, 2023). Non-public transaction terms are not disclosed.