Risk of acquisition benefits falling short and integration costs
First written in FY2016. 9 of 15 entries say "Restated". Latest entry: 2026-05-15.
Fronteo moved to the "Worse" side of this theme in 2024, 2 years after the typical company in this theme (2022).
The whole theme swung hardest in 2025: 10 of 32 companies on the "Worse" side.
9 other companies' latest entry also says "Materialised".
- 2026-05-15MaterialisedEarnings
「In connection with the withdrawal from the business of our U.S. subsidiary carried out in the previous fiscal year, a portion of the withdrawal costs, ¥51,451 thousand, was recorded as a loss on business restructuring of overseas subsidiaries under extraordinary losses.」
Business-restructuring costs related to the withdrawal from the U.S. subsidiary’s business were incurred again during the current fiscal year. - FY2026-H1MaterialisedAnnual report
「Operating income was ¥149.622 million, down 60.5% year on year, after ¥108.336 million in related expenses associated with the withdrawal of the US subsidiary from the e-discovery business were recorded. A ¥39.593 million loss on the restructuring of an overseas subsidiary’s business was also recorded.」
Related expenses of ¥108.336 million associated with the US subsidiary’s withdrawal from e-discovery and a ¥39.593 million loss on the restructuring of an overseas subsidiary’s business were recorded, indicating that post-acquisition business restructuring costs continued to be incurred. - FY2025MaterialisedAnnual report
「This resulted from the implementation of structural reforms associated with the withdrawal from the e-discovery support business at the US subsidiary. The Company recorded ¥2.844 million in legal fees. The US subsidiary recorded ¥90.640 million in special retirement payments to local employees, ¥148.514 million in prepaid license fees, and ¥19.292 million in other expenses.」
Following the acquisition, the US business withdrew from the e-discovery support business and implemented structural reforms due to the difficulty of achieving growth, resulting in a ¥289.743 million loss on the restructuring of an overseas subsidiary’s business. - FY2024MaterialisedAnnual report
「Following the end of a major customer engagement and a review of the US subsidiary’s business plan, it was determined that realizing the future growth and business plan expected at the time of the share acquisition would be difficult. An impairment loss of ¥2,475.459 million was recorded on customer-related assets and goodwill arising at the time of the acquisition of the US subsidiary.」
It was determined that the future growth and business plan expected at the time of the acquisition of the US subsidiary would be difficult to realize, resulting in an impairment loss of ¥2,475.459 million on customer-related assets and goodwill. - FY2024-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
It was stated that there had been no new or significant changes in the key risks, including failure to realize acquisition benefits, integration costs, and goodwill impairment. - FY2020-Q2RestatedAnnual report
「There were no newly arising business or other risks during the cumulative consolidated period for the second quarter. In addition, there were no material changes to the business and other risks described in the annual securities report for the preceding fiscal year.」
It was stated that there had been no new developments or significant changes in the risks, including failure to realize acquisition benefits, integration costs, and goodwill impairment. - FY2019-Q2RestatedAnnual report
「There were no newly arising business or other risks during the cumulative consolidated period for the second quarter. In addition, there were no material changes to the business and other risks described in the annual securities report for the preceding fiscal year.」
It was stated that there had been no new developments or significant changes in the risks, including failure to realize acquisition benefits, integration costs, and goodwill impairment. - FY2018-Q3RestatedAnnual report
「There have been no material changes to the business and other risks described in the securities report for the previous fiscal year.」
It explained that there had been no significant changes in the existing risks, including failure to realize acquisition benefits, integration costs, and goodwill impairment. - FY2018-Q2RestatedAnnual report
「No new business or other risks arose during the six months ended 30 September. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
It explained that there had been no new developments or significant changes in the existing risks, including failure to realize acquisition benefits, integration costs, goodwill impairment, and business restructuring expenses. - FY2018-Q1RestatedAnnual report
「There were no newly arising business or other risks during the cumulative consolidated period for the first quarter. In addition, there were no material changes to the business and other risks described in the annual securities report for the preceding fiscal year.」
It explained that there had been no new developments or significant changes in the risk of acquisitions failing to deliver expected benefits or of integration costs. - FY2017ReframedAnnual report
「As part of its growth strategy, the Group may acquire companies through M&A and other means. If changes in the business environment beyond expectations cause its management and financial position to deteriorate, this may affect the Group’s business, while impairment of goodwill and expenses associated with business restructuring may also affect its operating results and financial position.」
The previous risk, which centered on acquisitions failing to deliver expected benefits and integration costs, has been reorganized to include risks associated with goodwill impairment and business restructuring expenses arising from M&A. - FY2017-Q3RestatedAnnual report
「There were no newly arising business or other risks during the cumulative consolidated period for the third quarter. In addition, there were no material changes to the business and other risks described in the annual securities report for the preceding fiscal year.」
It explained that there had been no new developments or significant changes in the risk of acquisitions failing to deliver expected benefits or of integration costs. - FY2017-Q2RestatedAnnual report
「No new business or other risks arose during the six months ended 30 September. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
It explained that there had been no new developments or significant changes in the risk of acquisitions failing to deliver expected benefits or of integration costs. - FY2017-Q1RestatedAnnual report
「There have been no material changes to the business and other risks described in the securities report for the previous fiscal year.」
It explained that there had been no significant changes in the risk of acquisitions failing to deliver expected benefits or of integration costs. - FY2016First statedAnnual report
「If the expected benefits of these acquisitions are not realized, or if costs increase due to organizational restructuring or reinforcement to improve efficiency, or if unforeseen events or circumstances arise, they may affect the Group’s financial position and operating results.」
While identifying the acquisitions of 2 US companies as a means of growth, it specifically cited failure to realize acquisition benefits, integration and reinforcement costs, and unforeseen events as risks.