Risk of failing to expand sales channels and profits after a corporate acquisition
First written in FY2016. 2 of 7 entries say "Mitigated", first in FY2017. Latest entry: FY2026.
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
「The Group regards M&A as an important strategy for sustainable growth. However, in addition to the risk that M&A may not progress at the expected pace, the discovery of previously unrecognized liabilities after an acquisition or failure to advance the post-merger integration process (PMI) as planned may prevent the expected synergies from being realized and result in goodwill impairment losses, potentially adversely affecting the Group's performance and financial condition.」
Added specific risk factors for failure to achieve M&A targets: slower-than-planned progress, undisclosed liabilities after acquisition, ineffective PMI, unrealized synergies, and goodwill impairment. - 2026-05-15MitigatedEarnings presentation
「Managed as a standardized project by the PMI team.」
Post-M&A integration and monitoring were given concrete form as standardized project management by the PMI team. - FY2023RaisedAnnual report
「In particular, the Group is actively pursuing acquisitions of companies in the same industry in its IT infrastructure-related business.」
The Group specifies that it will actively pursue the use of M&A as a means of growth, particularly in its IT infrastructure-related business. - FY2020RestatedAnnual report
「In gathering information and implementing acquisitions, the Group avoids relying solely on M&A brokers and other intermediaries. Instead, wherever possible, it builds personal relationships with the management of target companies and makes decisions after conducting due diligence and following rigorous internal procedures.」
The policy of using M&A as a means of growth, together with the Group's relationships with target companies, due diligence and rigorous internal procedures, is reconfirmed. - FY2018RestatedAnnual report
「In implementing this strategy, the Group will select target companies only after conducting sufficient due diligence and following rigorous internal procedures. However, following such acquisitions, changes in market conditions and other factors may prevent the Group from expanding its sales channels or profits as planned, potentially adversely affecting the Group's business, operating results and financial condition.」
The policy of using acquisitions as a means of growth, the risk of failing to expand sales channels and profits after acquisitions, and measures including due diligence are reiterated. - FY2017MitigatedAnnual report
「In implementing this strategy, the Group will select target companies only after conducting sufficient due diligence and following rigorous internal procedures.」
The Group explicitly states that it will conduct due diligence and follow rigorous internal procedures to address the risk of failing to expand sales channels and profits after an acquisition. - FY2016First statedAnnual report
「As part of its ongoing efforts to expand its business, the Group intends to consider the acquisition of competitors as one option. Following such acquisitions, changes in market conditions and other factors may prevent the Group from expanding its sales channels or profits as planned, potentially adversely affecting the Group's business, operating results and financial condition.」
The Group is considering acquisitions as a means of growth, while indicating the possibility that sales channels and profits may not expand as planned after an acquisition.