AES POLICIES

American buyers have repeatedly failed in their attempts to acquire Japanese properties. They seldom pass the initial offering phase because they repeatedly make the same mistakes. The reason is that American investors have a false impression of Japanese sellers, their reasons for selling, and the reasons why they don't sell. (See the Featured Article for an illustrated example.) The conventionally accepted U.S. buyer's paradigm is erroneous. The perceived stereotype comprises the following three false illusions:

• Japanese owners are forced to sell their properties at substantial losses to avoid bankruptcy.
• Japanese-owned U.S. properties offered for sale are beginning to flood the market.
• Sellers will refuse to sell if the offering price is lower than their unreasonable expectations.

This widely-adopted paradigm upon which American businessmen have based their acquisition strategies is terribly flawed. It is founded on misunderstandings and misinterpretations. The new and valid paradigm put forward by AES consists of the following, reality-based facts:

• Japanese owners are not forced, or under pressure to sell their properties.
• Sellers will sell if the sale relieves them of all encumbrances.
• Sellers will sell if losses are minimized and tolerable.
• Japanese cultural and business issues must be understood and applied.