Investment Recovery and Impairment Risks Following M&A Transactions
First written in FY2017. 4 of 7 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
60 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「The company has completed a total of 7 M&A transactions to date. In executing M&A, etc., the company investigates and analyzes the businesses, regions and market trends concerned, as well as the management condition and financial position of the counterparty companies. However, there is no guarantee that matters will proceed as anticipated because of significant changes in the external environment, employee departures, conflicting interests among the parties and other factors.」
The company reported a total of 7 M&A transactions and continues to disclose risks related to investigation constraints, business deterioration, difficulty recovering investments, additional costs and impairment of goodwill. - FY2023MaterialisedAnnual report
「During the current consolidated fiscal year, the fair value of the shares of 株式会社STANDING OVATION, the company’s capital and business alliance partner, declined significantly. The company recognized an impairment loss and recorded ¥5.992 million as a loss on valuation of investment securities under extraordinary losses.」
The investment in the capital and business alliance partner experienced a significant decline in fair value, and the company recognized a ¥5.992 million valuation loss. - FY2022RestatedAnnual report
「To date, the company has completed 2 transfers of businesses from or to other companies and made 4 other companies subsidiaries, for a total of 6 M&A transactions. In executing M&A, etc., the company investigates and analyzes the businesses, regions and market trends concerned, as well as the management condition and financial position of the counterparty companies. However, there is no guarantee that matters will proceed as anticipated because of significant changes in the external environment, employee departures, conflicting interests among the parties and other factors.」
While reporting a track record of 6 M&A transactions in total, the company continues to disclose risks related to the external environment, employee departures, constraints on investigations, difficulty recovering investments and impairment. - FY2022-Q3Post-acquisition business reorganization and sale policyAnnual report
「デジタルクエスト will retain only its media content business apart from the business covered by this transaction. As no synergies are expected between that business and the Group, the company intends to proceed with the sale of the shares of デジタルクエスト to an external third party.」
The company stated its policy of proceeding with the external sale of デジタルクエスト after the acquisition, while retaining its media content business, which was not expected to generate synergies with the Group. - FY2019RestatedAnnual report
「If the performance of a counterparty company deteriorates, the Group’s operating results and financial position may be affected by difficulty recovering investments, additional costs, impairment of goodwill and other factors.」
The company reiterates the risks of deteriorating performance after M&A, difficulty recovering investments, additional costs and impairment of goodwill. - FY2018RestatedAnnual report
「The Group intends to actively consider M&A and capital alliances, among other transactions (collectively, “M&A, etc.”), to expand into new regions and businesses and strengthen its existing businesses. …If the performance of a counterparty company deteriorates, the Group’s operating results and financial position may be affected by difficulty recovering investments, additional costs, impairment of goodwill and other factors.」
The company reiterates its policy of executing M&A and the risks of insufficient investigation, deteriorating performance, difficulty recovering investments and impairment. - FY2017First statedAnnual report
「There is no guarantee that matters will proceed as anticipated because of significant changes in the external environment, employee departures, conflicting interests among the parties and other factors. If sufficient investigation and analysis cannot be conducted because of constraints when considering M&A, etc., contingent liabilities may arise or unrecognized liabilities may be identified after execution.」
The company describes the possibility of contingent and unrecognized liabilities, difficulty recovering investments, additional costs and impairment of goodwill after M&A.