Uncertainty over Business Development and Contribution to Earnings after the M&A
First written in FY2016. 6 of 10 entries say "Restated". Latest entry: FY2026.
Ship Healthcare Holdings moved to the "Worse" side of this theme in 2025, 3 years after the typical company in this theme (2022).
The whole theme swung hardest in 2025: 9 of 30 companies on the "Worse" side.
36 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Based on due diligence conducted before M&A, the Group identifies potential risks and negotiates acquisition prices, while conducting thorough deliberations at the Board of Directors. After making an acquired company a subsidiary, the Group works to strengthen coordination with the Group and rigorously manage performance in an effort to achieve the planned targets.」
The response policy for uncertainty surrounding post-M&A business development and contribution to earnings continues to include due diligence, Board of Directors deliberations, strengthened coordination and performance management. - 2026-05-12MaterialisedEarnings
「Provision for allowance for doubtful accounts 2,415」
A ¥2,415 million provision for allowance for doubtful accounts was recorded as an extraordinary loss, reflecting additional losses associated with uncertainty over business development and earnings contributions after M&A. - FY2025MaterialisedAnnual report
「The carrying amounts of the tangible fixed assets and other assets listed below were reduced to their recoverable amounts, and impairment losses were recognized because the earnings originally planned could no longer be expected.」
For the Bangladesh business, the earnings originally planned could no longer be expected, and an impairment loss of ¥409 million was recognized on tangible fixed assets and other assets. The uncertainty surrounding post-M&A business development and contribution to earnings materialized as an additional loss. - FY2024-Q3RestatedAnnual report
「In light of the increasingly difficult circumstances for collecting foreign-currency-denominated receivables and making purchases due to further tightening of financial sanctions, and because such conditions are expected to continue, the company determined that the excess earning power initially anticipated could no longer be expected and recognized an impairment loss of ¥2,635 million, equivalent to the full amount of goodwill, in the cumulative second quarter of the fiscal year.」
For the Myanmar subsidiary, the expected earning power following the M&A could no longer be expected, and the fact that ¥2,635 million of goodwill was impaired has again been confirmed during the quarter. - FY2024-Q2MaterialisedAnnual report
「In light of the increasingly difficult circumstances for collecting foreign-currency-denominated receivables and making purchases due to further tightening of financial sanctions, and because such conditions are expected to continue, the company determined that the excess earning power initially anticipated could no longer be expected and recognized an impairment loss of ¥2,635 million, equivalent to the full amount of goodwill, as an extraordinary loss.」
For the Myanmar subsidiary, the excess earning power anticipated at the time of acquisition could no longer be expected, and an impairment loss of ¥2,635 million, equivalent to the full amount of goodwill, was recognized. The uncertainty surrounding post-M&A contribution to earnings has materialized as an actual loss. - FY2022RestatedAnnual report
「Based on due diligence conducted before M&A, the Group identifies potential risks and negotiates acquisition prices, while conducting thorough deliberations at the Board of Directors. After making an acquired company a subsidiary, the Group works to strengthen coordination with the Group and rigorously manage performance in an effort to achieve the planned targets.」
The response policy for uncertainty surrounding post-M&A business development and contribution to earnings continues to include due diligence, Board of Directors deliberations, strengthened coordination and performance management. - FY2021RestatedAnnual report
「Based on due diligence conducted before M&A, the Group identifies potential risks and negotiates acquisition prices, while conducting thorough deliberations at the Board of Directors. After making an acquired company a subsidiary, the Group works to strengthen coordination with the Group and rigorously manage performance in an effort to achieve the planned targets.」
The response policy for uncertainty surrounding post-M&A business development and contribution to earnings continues to include due diligence, Board of Directors deliberations, strengthened coordination and performance management. - FY2020RestatedAnnual report
「Based on due diligence conducted before M&A, the Group identifies potential risks and negotiates acquisition prices, while conducting thorough deliberations at the Board of Directors. After making an acquired company a subsidiary, the Group works to strengthen coordination with the Group and rigorously manage performance in an effort to achieve the planned targets.」
The uncertainty surrounding post-M&A business development and contribution to earnings continues to be recognized, with responses including due diligence, Board of Directors deliberations, post-acquisition coordination and performance management. - FY2018RestatedAnnual report
「The Group regards M&A as one means of expanding its business and may require substantial funds in the future. Even if it carries out acquisitions or otherwise makes subsidiaries through M&A in the future, it remains uncertain whether the business development or contribution to earnings envisioned by the Group can be achieved, and in some cases this may adversely affect results.」
While using M&A as a means of growth, the Group continues to disclose uncertainty regarding funding needs, post-integration business development and contribution to earnings. - FY2016First statedAnnual report
「Even if the Group carries out acquisitions or otherwise makes subsidiaries through M&A in the future, it remains uncertain whether the business development or contribution to earnings envisioned by the Group can be achieved, and in some cases this may adversely affect results.」
While using acquisitions as a means of growth, the company explicitly states that the anticipated business development and contribution to earnings may not materialize.