Post-M&A PMI Shortfalls and Synergy and Goodwill Impairment Risks
First written in FY2025. 2 of 4 entries say "Mitigated", first in 2026-07-01. Latest entry: 2026-08-13.
The whole theme swung hardest in 2024: 37 of 90 companies on the "Worse" side.
24 other companies' latest entry also says "Mitigated".
- FY2026RestatedAnnual report
「Before conducting M&A, we carry out detailed due diligence on the target company's business activities, financial condition and contractual arrangements, and thoroughly assess the associated risks. For PMI, we aim to realise synergies at an early stage by establishing a clear integration plan and KPIs and allocating management resources appropriately.」
The company continues to disclose the risks of underperformance in post-M&A PMI, unrealised synergies, underperformance by acquired businesses, prolonged investment recovery and goodwill impairment, and sets out measures involving due diligence, an integration plan and KPIs. - FY2025First statedAnnual report
「We regard M&A as one of our key strategies for strengthening our business base and entering new business areas. However, if post-M&A PMI (the business integration process) does not progress as planned, expected synergies are not fully realised, or the acquired business does not perform as anticipated, this could affect the Group's operating results and financial condition through a longer investment recovery period and impairment losses on goodwill, among other factors.」
While positioning M&A as a key strategy, the company is disclosing systematically, for the first time, the risks of delayed integration, unrealised synergies, underperformance by acquired businesses, prolonged investment recovery and goodwill impairment as an integrated risk.