Unrealized Synergies and Integration Failures in Business Alliances and M&A
First written in FY2019. 3 of 8 entries say "Materialised", first in FY2024-Q3. Latest entry: FY2026.
DeNA moved to the "Worse" side of this theme in 2024, the same year as the typical company in this theme.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
25 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「As of the end of the current consolidated fiscal year, goodwill of ¥20,747 million was recognized on the consolidated statement of financial position. There is a potential risk that impairment charges and other factors relating to this goodwill balance may affect our group’s financial results and other matters.」
The goodwill balance declined to ¥20,747 million, and a goodwill impairment loss of ¥9,614 million, primarily relating to Arum, was recognized during the fiscal year. Post-M&A business-plan and integration risks continue to be reflected in financial performance. - FY2025WorsenedAnnual report
「As of the end of the current consolidated fiscal year, goodwill of ¥30,361 million was recognized on the consolidated statement of financial position. There is a potential risk that impairment charges and other factors relating to this goodwill balance may affect our group’s financial results and other matters.」
Regarding the risk of goodwill impairment associated with M&A and other transactions, an impairment loss of ¥3,202 million was recognized during the fiscal year, leaving goodwill of ¥30,361 million at fiscal year-end. - FY2024Goodwill impairment recognized for the full fiscal yearAnnual report
「As of the end of the current consolidated fiscal year, goodwill of ¥33,562 million was recognized on the consolidated statement of financial position. There is a potential risk that impairment charges and other factors relating to this goodwill balance may affect our group’s financial results and other matters.」
Goodwill associated with M&A and other transactions declined from ¥49,088 million to ¥33,562 million, and goodwill impairment was recognized during the current consolidated fiscal year for IRIAM, Data Horizon, Nihon Techno Systems and other businesses. - FY2024-Q3MaterialisedAnnual report
「Because indications of impairment were identified for goodwill allocated to the following cash-generating units, we conducted impairment testing.」
Goodwill impairment risks relating to businesses acquired through M&A and other transactions materialized, leading to impairment testing and the recognition of impairment losses for IRIAM, Data Horizon and Nihon Techno Systems, among others. - FY2023Increase in goodwill balanceAnnual report
「As of the end of the current consolidated fiscal year, goodwill of ¥49,088 million was recognized on the consolidated statement of financial position. There is a potential risk that impairment charges and other factors relating to this goodwill balance may affect our group’s financial results and other matters.」
The goodwill balance of ¥49,088 million at the end of the current fiscal year was specified in relation to the risks of unsuccessful post-M&A integration and business development and goodwill impairment. - FY2019First statedAnnual report
「Before making M&A decisions, we endeavor to examine the target company’s financial position, contractual relationships and other matters and consider the risks. However, if problems that could not be identified through prior investigations arise after the acquisition, such as contingent liabilities or previously unrecognized liabilities, or if post-M&A business integration or development does not proceed as planned, our group may need to recognize impairment losses on goodwill, which may affect its business and financial performance.」
The company identifies as risks the failure to realize expected synergies from alliances and M&A, termination of alliances, contingent and previously unrecognized liabilities after acquisitions, unsuccessful integration and goodwill impairment.