Risks of Unforeseen Problems and Goodwill Impairment Associated with Business Alliances and Corporate Acquisitions
First written in FY2018-Q3. 6 of 9 entries say "Materialised", first in FY2020. Latest entry: FY2026.
Transgenic Group moved to the "Worse" side of this theme in 2020, 4 years before the typical company in this theme (2024).
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
44 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Because indicators of impairment were identified in certain asset groups of the drug discovery support business during the consolidated fiscal year, the Company assessed whether impairment losses were required for those asset groups and recorded ¥47.072 million in impairment losses under extraordinary losses for assets for which recovery of the investment was not expected.」
The risk of failing to achieve anticipated revenue and being unable to recover investments continued, and the Company recorded ¥47.072 million in impairment losses in the drug discovery support business. - FY2025MaterialisedAnnual report
「Because indicators of impairment were identified in certain asset groups and certain shared assets of the drug discovery support business and Investment and Consulting business, the Company assessed whether impairment losses were required for those asset groups and recorded ¥228.871 million in impairment losses under extraordinary losses for assets for which recovery of the investment was not expected.」
The risks of failing to achieve anticipated revenue from corporate acquisitions and business development and being unable to recover investments continued to materialize, and the Company recorded ¥228.871 million in impairment losses in the drug discovery support business and other operations. - FY2023-Q3RestatedAnnual report
「The Company recorded goodwill impairment losses in the Investment and Consulting business segment. The amount recorded during the first nine months of the fiscal year was ¥47.756 million.」
The Company reconfirmed that goodwill impairment associated with acquisitions and business development amounted to ¥47.756 million in the Investment and Consulting business. - FY2023-Q2MaterialisedAnnual report
「The Company recorded goodwill impairment losses in the Investment and Consulting business segment. The amount recorded during the first six months of the fiscal year was ¥47.756 million.」
The goodwill impairment risk associated with M&A and business development continued to materialize, and the Company recorded ¥47.756 million in impairment losses in the Investment and Consulting business. - FY2022-Q3MaterialisedAnnual report
「In the E-commerce business within the TGBS business segment, the Company reviewed the future business plan for 株式会社アウトレットプラザ, which mainly sells consumer electronics by mail order, in light of deteriorating external conditions, including weak consumer spending associated with the spread of COVID-19 and declining procurement of consumer electronics and other products due to semiconductor shortages. As a result, the Company determined that the initially anticipated revenue would not be generated for the time being and that recovery would require a certain period. It therefore reduced the carrying amount of goodwill to its recoverable amount and recorded the difference of ¥169.375 million as an impairment loss under extraordinary losses during the first nine months of the fiscal year.」
For the E-commerce business following the acquisition, the initially anticipated revenue was not expected to be generated for the time being because of weak consumer spending and lower procurement resulting from semiconductor shortages, and the Company recorded ¥169.375 million in goodwill impairment losses. - FY2021MaterialisedAnnual report
「The Company recognized impairment losses on asset groups and other assets related to the drug discovery support business and part of the TGBS business because the revenue initially anticipated from those businesses was no longer expected to be generated.」
The failure to achieve anticipated benefits from corporate acquisitions and business development continued to materialize, and the Company recorded ¥74.344 million in impairment losses on part of the drug discovery support and TGBS businesses during the current fiscal year as well. - FY2020MaterialisedAnnual report
「The Company recognized impairment losses on asset groups and other assets related to the CRO business and part of the TGBS business because the revenue initially anticipated from those businesses was no longer expected to be generated.」
The failure to achieve anticipated benefits from M&A and business development materialized, and the Company recorded ¥209.761 million in impairment losses on part of the CRO and TGBS businesses. - FY2019RestatedAnnual report
「If issues arise that could not be identified through due diligence, or if the initially anticipated benefits are not achieved because of changes in the business environment or other factors, the Company’s results of operations and financial position may be affected by goodwill impairment and other measures.」
The Company reiterates the risks of unexpected issues associated with corporate acquisitions, failure to achieve anticipated benefits and goodwill impairment. - FY2018-Q3First statedAnnual report
「If issues arise that could not be identified through due diligence, or if the initially anticipated benefits are not achieved because of changes in the business environment or other factors, the Company’s results of operations and financial position may be affected by goodwill impairment and other measures.」
The Company identifies, as new risks, the possibility that issues not identified through due diligence may arise, anticipated benefits may not be achieved, and goodwill impairment may affect results of operations and financial position, even as it pursues business alliances and corporate acquisitions to expand its business domains.