Unrecognized Liabilities, Failure to Achieve Business Plans and Goodwill Impairment Associated with M&A Transactions
First written in FY2021. 1 of 2 entries say "Restated". Latest entry: FY2022.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
60 other companies' latest entry also says "Restated".
- FY2022RestatedAnnual report
「Problems not identified during the due diligence, such as the discovery of unrecognised liabilities or the emergence of contingent liabilities, may arise after an acquisition. In addition, if the business develops after the acquisition otherwise than planned, this may affect the Company's performance.」
The Company reiterated the risks of unrecognised and contingent liabilities associated with M&A, failure to meet the business plan after an acquisition and goodwill impairment. - FY2021First statedAnnual report
「As one possible means of achieving this, the Company may conduct M&A transactions in the future. It will conduct detailed due diligence on the target companies and businesses, carefully assess the risks and proceed through an appropriate process, but problems not identified during the due diligence, such as the discovery of unrecognised liabilities or the emergence of contingent liabilities, may arise after an acquisition.」
The Company disclosed the possibility of conducting M&A transactions in the future and the resulting risks of unrecognised liabilities, failure to meet business plans and goodwill impairment after an acquisition.