Risk of post-M&A integration failure, inability to recover investment and goodwill impairment
First written in FY2025. 1 of 2 entries say "Mitigated", first in FY2026. Latest entry: FY2026.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
25 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「For specific transactions, the Group has worked to establish processes for considering and executing M&A, including conducting careful discussions at the Management Strategy Meeting and the Board of Directors based on the results of due diligence and valuation by external specialists. As a result, as of the date of submission of this document, the Group believes it has established a structure capable of conducting multifaceted reviews of M&A opportunities.」
In light of past LBO-related impairment losses, the Group states that it has established a framework for addressing M&A risks through due diligence and valuation using external specialists and review by the Board of Directors. - FY2025First statedAnnual report
「Regarding goodwill arising from the LBO transaction conducted at the time of our establishment, our group recorded an impairment loss of ¥2,054,303 thousand for the fiscal year ended June 2020.」
Based on past impairment, discloses the post-acquisition integration process and the recoverability of investments as risks.