Risk of failing to realize expected profits and synergies after acquisitions and investments
First written in FY2017. 1 of 3 entries say "Materialised", first in FY2021-Q3. Latest entry: FY2026.
HONYAKU Center moved to the "Worse" side of this theme in 2021, 3 years before the typical company in this theme (2024).
The whole theme swung hardest in 2023: 35 of 97 companies on the "Worse" side.
26 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Because the excess earning power assumed in the business plan considered at the time of the business acquisition was no longer expected to materialise, the carrying amount was reduced to the recoverable amount, and the reduction was recorded as an impairment loss under extraordinary losses. The recoverable amount was calculated using value in use, and because projected future cash flows became uncertain, the entire goodwill balance was impaired.」
Because the excess earning power assumed at the time of the business acquisition was no longer expected to materialise and future cash flows had become uncertain, the entire goodwill balance was impaired. - FY2021-Q3MaterialisedAnnual report
「In connection with the goodwill recognised when the Group acquired its consolidated subsidiary 株式会社メディア総合研究所, the carrying amount was reduced to the recoverable amount because the excess earning power assumed in the business plan considered at the time of the share acquisition was no longer expected to materialise, and the reduction was recorded as an impairment loss under extraordinary losses. The recoverable amount was calculated using value in use, and because projected future cash flows became uncertain, the entire goodwill balance was impaired.」
Because the excess earning power assumed at the time of the acquisition was no longer expected to materialise and future cash flows had become uncertain, the full amount of goodwill relating to メディア総合研究所, ¥192,703 thousand, was actually recognised as an impairment loss. - FY2017First statedAnnual report
「The Group may make investments, including business acquisitions and equity investments, to strengthen and reinforce its businesses. …If it is unable to secure the expected profits and synergies, this could affect the Group's performance and financial position.」
It is stated that integration or the expected benefits of investments, including business acquisitions and equity investments, may not be realised as expected.