The Japanese government will soon issue guidelines encouraging startups to see acquisitions as a viable alternative to IPOs, Nikkei Asia reported Wednesday.
The Ministry of Economy, Trade and Industry developed these guidelines based on expert discussions that began in 2025, and while they are not legally binding, they are expected to become industry standard practice, the news daily said.
The guidelines recommend that startups develop strategies open to both early-stage acquisitions and IPOs, including paying attention to veto power granted during equity fundraising, the publication said.
The guidelines caution against granting certain shareholders veto rights, warning that concentrated veto power could stall or derail acquisition negotiations, the report said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)