Risks relating to M&A transactions, integration costs and goodwill impairment
First written in FY2025. 4 of 5 entries say "Materialised", first in FY2026-H1. Latest entry: FY2026.
Yamaichi Real Estate moved to the "Worse" side of this theme in 2025, 1 year after 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
「During the current consolidated fiscal year, all of the remaining unamortized goodwill recognized upon the acquisition of certain consolidated subsidiaries was recorded as an impairment loss under extraordinary losses because the earnings initially expected at the time of acquisition could no longer be anticipated.」
The expected earnings of an M&A-acquired subsidiary could no longer be anticipated, and goodwill of ¥125,843 thousand was fully impaired, demonstrating that the risk of post-M&A underperformance materialized. - FY2026-H1MaterialisedAnnual report
「The improvement of a subsidiary acquired through M&A in the previous fiscal year, whose core business is detached-home development and sales, took longer than expected, and performance was substantially below plan.」
The prolonged improvement of an M&A-acquired subsidiary actually occurred and became a factor behind the real estate development and sales business falling substantially below plan. - FY2025First statedAnnual report
「The Group may conduct M&A to expand business domains and generate new income. It may not always be able to acquire high-quality opportunities on a stable basis. Temporary costs arising from M&A may worsen performance. If the assumed business plan does not progress as scheduled, the Group’s operating results and financial condition may be affected by goodwill impairment and other factors.」
The Group newly identified as major risks the ability to secure high-quality M&A opportunities, acquisition costs, failure to meet plans and goodwill impairment.