Every week, in collaboration with LISTING, an M&A matching platform for small and medium-sized enterprises (SMEs), we report on newly listed assets and acquisition demand in the domestic M&A market. By examining the background of deals and market trends, we provide practical market information to companies and investors considering M&A. [Editor’s Note]

[Edaily MarketIn Reporter Song Seung-Hyeon ] An AI-based video content production company and a meat processing and food franchise company have been listed for sale one after another in the domestic mergers and acquisitions (M&A) market. Both are growth-stage companies that have just surpassed 10 billion won in annual revenue; they share the common trait of entering the market at an inflection point where they have begun to turn a profit. A general retail company and an auto parts manufacturer have each begun searching for acquisition targets, aiming to acquire a brand and secure manufacturing capabilities, respectively. A trend in sales where growth rates and structural differentiators are emphasized over absolute profit figures stands out as a prominent feature of this week’s market.

According to LISTING, an M&A matching platform, Company A, an AI video content production firm with annual revenue in the 10 billion won range, is seeking a buyer. Company A more than doubled its revenue compared to the previous year, turned a profit, and recorded an operating profit margin in the 5% range. Its core assets include AI-integrated production capabilities—a skill possessed by only a handful of domestic companies—a track record with major corporate clients, and an organization composed of former employees from large advertising agencies. With fewer than 10 employees, the company has a structure with low fixed costs, and the asking price—set at 5 billion won or less—is relatively low given its scale. The transaction is structured as a 100% equity sale, contingent upon the retention of all current employees.

Another property on the market is Company B, a food company with annual sales in the 10 billion won range. It is characterized by a vertically integrated structure that directly encompasses everything from meat processing to logistics, franchise operations, and direct online sales, generating revenue from both B2B and B2C channels. In the most recent fiscal year, sales grew by the 30% range, and operating profit increased by more than 50%, raising the operating profit margin to the 4% range. The company holds packaging-related patents, trademarks, and hygiene certifications, and real estate assets valued at around 2 billion won are also included in the transaction. The asking price is 9 billion won or less, and the company is considered a suitable acquisition target for buyers looking to expand into food distribution or the restaurant franchise sector.

Acquisition interest is also taking shape. Company C, a comprehensive retail and consumer goods distribution firm, is considering the acquisition of a brand in the general merchandise and household consumer goods sector with a budget of over 10 billion won. Since the company is prioritizing product lines that can generate synergies by being immediately integrated into its existing distribution network—rather than its current apparel category—companies with strong product competitiveness but limited distribution channels are expected to be given higher priority.

Automotive parts manufacturer D is also reviewing acquisition targets in the manufacturing and hardware sectors with a budget of over 20 billion won. While the company sets an annual revenue of at least 10 billion won as a basic requirement, it is open to considering companies that are somewhat smaller in scale if they show high growth potential. It prefers companies with a proven customer base and production capacity, particularly in the parts and materials sectors where synergies with its existing business can be realized.

Industry observers believe this two-way market revitalization—driven by both supply and demand—will continue for the time being. Companies in the 10 billion won range are viewed as having business models that have already been validated by the market, while still offering acquirers room to leverage their own resources to take them to the next level. Consequently, forecasts suggest that deals will continue to be matched, particularly for small and medium-sized companies in the growth stage.

A Listing official stated, “Sellers are also prioritizing growth rates and structural differentiation over absolute profit figures, so the trend of companies at the inflection point where they’ve begun to turn a profit attracting market attention is continuing.”

Detailed information on available properties and acquisition demand can be found on LISTING.