Risks of insufficient M&A due diligence, delayed integration and goodwill impairment
First written in FY2025-H1. 1 of 3 entries say "Softened", first in FY2026. Latest entry: 2026-10-28.
SHINTO Holdings moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
The whole theme swung hardest in 2024: 39 of 92 companies on the "Worse" side.
48 other companies' latest entry also says "Materialised".
- 2026-10-28MaterialisedM&A and Subsidiary Changes
「しかしながら、栄新商事を連結子会社化した後、実際に連結決算及び経営管理等を行う中で、同社が従来から独立性の高い経営を行ってきたことから、その従来の経営管理のあり方と、上場会社である当社が子会社に求める情報共有、報告及び経営管理のあり方との間に、実務上の相違があることが明らかとなりました。」
M&A後の経営管理や情報共有の相違・統合上の課題として従来記載されていたリスクが、栄新商事との実務上の相違および親子会社関係の解消方針として具体化している。 - FY2026SoftenedAnnual report
「We have pursued an M&A strategy to date and will continue to create opportunities with the aim of strengthening business continuity.」
M&A-related risks remain, but the detailed explanations of risks such as insufficient due diligence, integration delays and previously unrecognized liabilities that were included in the previous interim period have been abbreviated in the current year's section. - FY2025-H1First statedAnnual report
「When making acquisitions, we seek to avoid risks as far as possible by conducting detailed due diligence on the target company's financial position, contractual relationships and other matters. However, depending on the nature of the transaction and time constraints, sufficient due diligence may not be possible, and contingent liabilities may arise or previously unrecognized liabilities may come to light after the acquisition. As a result, it may take longer than expected to recover invested capital, the capital may not be recoverable, or goodwill impairment may become necessary, which could affect the business, operating results and financial position of our group. In addition, the integration of information systems with the acquired company, the standardization of internal control systems and other matters, and the retention and succession of the acquired company's officers, employees and customers may not proceed as planned, which could affect the business, operating results and financial position of our group.」
While positioning domestic and overseas acquisitions as an important strategy, the company has identified as new risks contingent liabilities and previously unrecognized liabilities resulting from insufficient due diligence, delays in or inability to recover invested capital, goodwill impairment, delays in integrating information systems and internal controls, and uncertainty regarding the retention and succession of officers, employees and customers.