Unexpected Impacts of M&A and Business Expansion
First written in FY2016. 4 of 11 entries say "Restated". Latest entry: FY2026.
create restaurants holdings moved to the "Worse" side of this theme in 2022, 1 year before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 9 of 30 companies on the "Worse" side.
8 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「At Il Fornaio in North America, where difficulties have continued, we began a fundamental business restructuring, including a renewal of the management structure.」
It states that Il Fornaio, acquired through M&A, has continued to struggle and that business restructuring, including a renewal of the management structure, has begun. - 2026-04-14MaterialisedResults presentation
「Il Fornaio, a high-priced brand, struggled throughout the year and deteriorated in the fourth quarter amid North American inflation fatigue. Strong performance at Wildflower was insufficient to offset the shortfall, leaving both revenue and cash flow below forecast.」
Performance at a high-priced brand in North America deteriorated, and the group also indicated plans to withdraw from 3 unprofitable stores and restructure following a change of CEO. - FY2025MaterialisedAnnual report
「As a result of the impairment test conducted during the consolidated fiscal year, the amount of the impairment loss recognized on an intangible asset with an indefinite useful life was ¥258 million. An impairment loss was recognized because the originally anticipated sales revenue was no longer expected to be achieved by the Il Fornaio cash-generating unit group.」
For Il Fornaio, acquired through M&A, a ¥258 million impairment loss was recognized on an intangible asset with an indefinite useful life because the anticipated sales revenue was no longer expected to be achieved. - FY2025-H1MitigatedAnnual report
「There were no cash-generating unit groups for which indicators of impairment were identified during the interim consolidated fiscal period.」
While an impairment loss was recognized on Sports & Leisure goodwill in the previous interim period, it was disclosed that no cash-generating unit groups had indicators of impairment during the current interim period. - FY2024RestatedAnnual report
「As one of its growth strategies, the Group has carried out numerous M&A transactions expected to generate synergies. Consequently, if results that the Group did not anticipate in advance cause the fair value of goodwill or intangible assets to fall significantly below their carrying amounts, the Group may recognize an impairment loss, which could affect its financial position and performance.」
It continues to describe the risk of a decline in the valuation of goodwill and intangible assets and impairment losses associated with M&A. - FY2024-Q2MaterialisedAnnual report
「During the six months ended the second quarter of the current fiscal year, the Group identified indicators of impairment for goodwill relating to the Sports & Leisure cash-generating unit group because actual operating income was worse than budgeted. As a result of the impairment test, the Group recognized an impairment loss of ¥347 million in other operating expenses in the condensed interim consolidated statement of income, reflecting both the loss of the originally anticipated profitability and an increase in the discount rate from the end of the previous fiscal year.」
Regarding unexpected impacts associated with M&A and business expansion, the deterioration in operating income and decline in expected profitability of Sports & Leisure actually occurred, and a ¥347 million impairment loss on goodwill was recognized. - FY2022WorsenedAnnual report
「As one of its growth strategies, the Group has carried out numerous M&A transactions expected to generate synergies. Consequently, if results that the Group did not anticipate in advance cause the fair value of goodwill or intangible assets to fall significantly below their carrying amounts, the Group may recognize an impairment loss, which could affect its financial position and performance.」
Regarding unexpected impacts of M&A, it specifically identifies a decline in the valuation of goodwill and intangible assets and impairment losses as potential channels of impact, in addition to the previously cited general effects on performance and financial position. - FY2020RestatedAnnual report
「The Group plans to expand its business, including M&A of businesses expected to generate synergies with the core businesses operated by the Group. However, if the impact of this business expansion produces results that the Group did not anticipate in advance, the Group's financial position and performance may be affected.」
It continues to state the policy of using business expansion, including M&A, as a means of growth, and the risk of unexpected results. - FY2019RestatedAnnual report
「The Group plans to expand its business, including M&A of businesses expected to generate synergies with the core businesses operated by the Group. However, if the impact of this business expansion produces results that the Group did not anticipate in advance,」
It continues to state the policy of using business expansion, including M&A, as a means of growth, and the risk of unexpected results. - FY2017RestatedAnnual report
「The Group plans to expand its business, including M&A of businesses expected to generate synergies with the core businesses operated by the Group. However, if the impact of this business expansion produces results that the Group did not anticipate in advance, the Group's financial position and performance may be affected.」
It reconfirms the policy of pursuing business expansion, including M&A, and the risk that unexpected results may affect the financial position and performance. - FY2016First statedAnnual report
「If the expansion of these businesses produces results that the Group did not anticipate in advance, the Group's financial position and performance may be affected.」
While using M&A as a means of growth, it explicitly identifies the risk of unexpected results following business expansion.