Risks of Contingent Liabilities, Failure to Meet the Plan and Impairment Following M&A
First written in FY2016. 4 of 6 entries say "Restated". Latest entry: FY2026.
Ap 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: 36 of 89 companies on the "Worse" side.
25 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「If issues not identified in the preliminary investigation arise after an acquisition, such as contingent liabilities, previously unrecognized liabilities or labor-related problems, or if business development and other activities fail to progress as planned, goodwill may need to be impaired, which could affect the Company's group's operating results and financial position.」
The company explicitly identifies labor-related problems, in addition to contingent liabilities, previously unrecognized liabilities and failure to meet plans, as risks after M&A. - FY2021RestatedAnnual report
「When carrying out M&A, the company conducts due diligence on the target company's finances, legal affairs and business, carefully examines the risks, analyzes its normalized earnings capacity and then makes a decision. However, if issues not identified in the preliminary investigation arise after an acquisition, such as contingent liabilities or previously unrecognized liabilities, or if business development and other activities fail to progress as planned, goodwill may need to be impaired, which could affect the Company's group's operating results and financial position.」
The company reiterates the risks of contingent liabilities, failure to meet plans and goodwill impairment associated with M&A, as well as its policy on preliminary investigations. - FY2019RestatedAnnual report
「When carrying out M&A, the company conducts due diligence on the target company's finances, legal affairs and business, carefully examines the risks, analyzes its normalized earnings capacity and then makes a decision. However, if issues not identified in the preliminary investigation arise after an acquisition, such as contingent liabilities or previously unrecognized liabilities, or if business development and other activities fail to progress as planned, goodwill may need to be impaired, which could affect the Company's group's operating results and financial position.」
The company reiterates the risks of contingent liabilities, failure to meet plans and goodwill impairment associated with M&A, as well as its policy on preliminary investigations. - FY2018RestatedAnnual report
「When carrying out M&A, the company conducts due diligence on the target company's finances, legal affairs and business, carefully examines the risks, analyzes its normalized earnings capacity and then makes a decision. However, if issues not identified in the preliminary investigation arise after an acquisition, such as contingent liabilities or previously unrecognized liabilities, or if business development and other activities fail to progress as planned, goodwill may need to be impaired, which could affect the Company's group's operating results and financial position.」
The company reiterates the risks of contingent liabilities, failure to meet plans and goodwill impairment associated with M&A, as well as its policy on preliminary investigations. - FY2017RestatedAnnual report
「When carrying out M&A, the company conducts due diligence on the target company's finances, legal affairs and business, carefully examines the risks, analyzes its normalized earnings capacity and then makes a decision. However, if issues not identified in the preliminary investigation arise after an acquisition, such as contingent liabilities or previously unrecognized liabilities, or if business development and other activities fail to progress as planned, goodwill may need to be impaired, which could affect the Company's group's operating results and financial position.」
The company reiterates the risks of contingent liabilities, failure to meet plans and goodwill impairment associated with M&A, as well as its policy on preliminary investigations. - FY2016First statedAnnual report
「If issues not identified in the preliminary investigation arise after an acquisition, such as contingent liabilities or previously unrecognized liabilities, or if business development and other activities fail to progress as planned, goodwill may need to be impaired, which could affect the Company's group's operating results and financial position.」
While considering M&A, the company identifies the emergence of liabilities after an acquisition, failure to meet plans and possible goodwill impairment as risks.