Uncertainty Surrounding Acquisitions and Organizational Restructuring and Failure to Achieve Synergies
First written in FY2016. 1 of 2 entries say "Mitigated", first in FY2022. Latest entry: FY2022.
The whole theme swung hardest in 2025: 11 of 38 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- FY2022MitigatedAnnual report
「Following an acquisition, we establish a defined PMI period, during which a specialized department leads PMI efforts to achieve the intended objectives and maximize synergies. After the PMI period ends, we transfer responsibility to the relevant operating division and shift to group management organized around business divisions. We are working to pursue synergies led by the business divisions and achieve higher enterprise value and medium- to long-term growth across the Group.」
For acquisition and organizational restructuring risk, it specified management procedures consisting of pre-acquisition due diligence, post-acquisition PMI and the transfer to a business-division structure. - FY2016First statedAnnual report
「If acquisitions of companies or businesses, organizational restructuring or other initiatives do not proceed as anticipated, or if synergies among group companies fail to produce the expected results, the Group may be unable to achieve the profits assumed in its business strategy, adversely affecting its business performance and other aspects of operations.」
While using acquisitions and restructuring as means of achieving growth, it identifies the possibility that their progress and synergies may fall short of expectations as a risk.