M&A Execution Shortfalls and Impairment Risk
First written in FY2024. 1 of 2 entries say "Worsened", first in FY2025. Latest entry: FY2025.
L is B Corp. moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
25 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「Our group plans to use M&A effectively as one means of accelerating business expansion. However, if these M&A transactions or business alliances do not produce the results planned in advance, or if additional problems not identified during the investment review are discovered later, this could affect our group’s results of operations and financial position, including by requiring impairment of the value of acquired companies’ shares or acquired business assets.」
The group executed M&A including the acquisition of IU BIM STUDIO株式会社 and recorded goodwill of ¥486,971 thousand. It continues to identify the risks of M&A underperformance, newly identified problems and impairment. - FY2024First statedAnnual report
「However, if these M&A transactions or business alliances do not produce the results planned in advance, or if additional problems not identified during the investment review are discovered later, this could affect our group’s results of operations and financial position, including by requiring impairment of the value of acquired companies’ shares or acquired business assets.」
The company explicitly identifies the possibility that M&A and business alliances may fall short of plan, additional problems may emerge and acquired shares or business assets may be impaired.