Uncertainty surrounding business expansion and the development of new businesses through M&A
First written in FY2019-Q1. 6 of 14 entries say "Materialised", first in FY2019. Latest entry: FY2023.
G-Factory moved to the "Worse" side of this theme in 2024, the same year as the typical company in this theme.
The whole theme swung hardest in 2024: 39 of 91 companies on the "Worse" side.
50 other companies' latest entry also says "Materialised".
- FY2023MaterialisedAnnual report
「Major financial information ① Revenue ¥1.205163 billion ② Ordinary loss ¥85.348 million ③ Net loss ¥85.348 million ④ Net assets -¥299.386 million」
For Ｍ．Ｉ．Ｔ, an ordinary loss and net loss of ¥85.348 million and negative net assets of ¥299.386 million were disclosed, and the deterioration in business performance and financial condition after the acquisition continued to materialize. - FY2022MitigatedAnnual report
「Major financial information: ① Revenue: ¥1.087955 billion ② Ordinary profit: ¥86.055 million ③ Net income: ¥131.398 million ④ Net assets: -¥214.037 million」
Ｍ．Ｉ．Ｔ reported positive ordinary profit and net income, and its negative net assets narrowed from -¥478.614 million in the previous fiscal year to -¥214.037 million. The risk of deterioration in business performance after the acquisition was partially mitigated, but negative net assets remain. - FY2022-Q2MitigatedAnnual report
「At 株式会社Ｍ．Ｉ．Ｔ as well, customer traffic increased and revenue rose as restrictions such as shortened operating hours were lifted and its craftsman-style, high-value-added format gained customer support.」
For Ｍ．Ｉ．Ｔ after the acquisition, the recovery in visitor numbers and revenue was disclosed, partially mitigating the risk of deterioration in business performance after the acquisition. - FY2022-Q1MitigatedAnnual report
「The artisan-style, high-value-added business model has gained customer support, and visitor numbers and average spend per customer have gradually recovered.」
For Ｍ．Ｉ．Ｔ after the acquisition, the recovery in visitor numbers and average spend per customer was disclosed, partially mitigating the impact of the deterioration in business performance. - FY2021-Q3MaterialisedAnnual report
「At 株式会社Ｍ．Ｉ．Ｔ as well, customer traffic remained low and average customer spending declined because the company responded to requests from the government and local authorities by temporarily closing stores, shortening operating hours, and refraining from serving alcoholic beverages.」
At Ｍ．Ｉ．Ｔ, a subsidiary acquired through M&A, the impact of deterioration in business performance due to the infectious disease and administrative requests continued to materialize. - FY2021-Q2MaterialisedAnnual report
「At 株式会社Ｍ．Ｉ．Ｔ as well, customer traffic remained low and average customer spending declined because the company responded to requests from the government and local authorities by temporarily closing stores, shortening operating hours, and refraining from serving alcoholic beverages.」
At Ｍ．Ｉ．Ｔ, the business after the acquisition was affected by the infectious disease and administrative requests, resulting in actual declines in visitor numbers and average spend per customer. - FY2021-Q1MaterialisedAnnual report
「At 株式会社Ｍ．Ｉ．Ｔ as well, the number of visitors remained low because the company implemented measures such as temporary closures and reduced operating hours in response to requests from the government and local authorities.」
At 株式会社Ｍ．Ｉ．Ｔ after the acquisition, temporary closures and reduced operating hours due to the infectious disease and administrative requests, as well as a decline in visitor numbers, actually occurred. - FY2020MaterialisedAnnual report
「For 株式会社Ｍ．Ｉ．Ｔ, revenue excluding intercompany sales exceeded 10% of consolidated revenue. Major financial information: ① Revenue: ¥1.114816 billion ② Ordinary profit: ¥3.160 million ③ Net loss: -¥105.822 million ④ Net assets: -¥478.614 million」
For Ｍ．Ｉ．Ｔ, a net loss of ¥105.822 million and negative net assets of ¥478.614 million were disclosed, and the risks of deterioration in business performance and financial condition after the acquisition continued to materialize. - FY2020-Q3MitigatedAnnual report
「The effects of the scrap-and-build measures implemented in the previous fiscal year have begun to emerge, with performance recovering to approximately the level before the declaration of the state of emergency and operating profit turning positive.」
For Ｍ．Ｉ．Ｔ, where the risk of deterioration in business performance after the acquisition had materialized, the company states that operating profit turned positive as a result of the scrap-and-build measures. - FY2020-Q1RestatedAnnual report
「As part of these initiatives, during the first quarter of the current consolidated cumulative period, we promoted the expansion of the earnings capacity of 株式会社Ｍ．Ｉ．Ｔ, which became a subsidiary in March 2019.」
The company continues to promote the expansion of 株式会社Ｍ．Ｉ．Ｔ's earnings capacity after its acquisition. - FY2019MaterialisedAnnual report
「For 株式会社Ｍ．Ｉ．Ｔ, revenue excluding intercompany sales exceeded 10% of consolidated revenue. Major financial information: ② Ordinary loss: -¥59.124 million ③ Net loss: -¥112.389 million ④ Net assets: -¥372.791 million」
For the subsidiary acquired through M&A, ordinary loss, net loss and negative net assets were disclosed, indicating that the risks of deterioration in business performance and financial condition after the acquisition had materialized. - FY2019-Q3RestatedAnnual report
「Our group considers M&A in Japan and overseas one of the options for business expansion, with the aim of strengthening existing services, accelerating global expansion and entering new business areas. When conducting M&A, we seek to reduce various risks by conducting due diligence on the target company's financial condition, contractual relationships and other matters, including obtaining advice from external professionals such as attorneys, tax accountants and certified public accountants. However, business expansion through M&A may fail to produce the synergies, business expansion and other effects initially expected by our group. In addition, entering new business areas through M&A may add risk factors inherent in those businesses. Furthermore, deterioration in business performance after a company becomes a subsidiary, as well as goodwill amortization or impairment, may affect our group's operating results and financial condition.」
The company continues to identify the risks of failure to achieve synergies, deterioration in business performance after a company becomes a subsidiary, and goodwill amortization and impairment, while treating M&A as an option for business expansion and seeking to reduce risks through due diligence, including by external professionals. - FY2019-Q2Addition of due diligence measuresAnnual report
「When conducting M&A, we seek to reduce various risks by conducting due diligence on the target company's financial condition, contractual relationships and other matters, including obtaining advice from external professionals such as attorneys, tax accountants and certified public accountants.」
In addition to the existing risks associated with M&A, the company has specified risk mitigation measures through due diligence, including advice from external professionals. - FY2019-Q1First statedAnnual report
「However, in expanding the business through M&A, the group may fail to achieve the synergies, business expansion, and other benefits initially anticipated. In addition, entering new business areas through M&A may introduce risk factors specific to those businesses. Furthermore, deterioration in the business after a subsidiary is acquired, or amortization or impairment of goodwill, could affect the group's operating results and financial position.」
For M&A aimed at strengthening existing services, expanding globally and entering new business areas, the company has identified failure to achieve expected synergies, risks inherent in new business areas, deterioration in business performance after a company becomes a subsidiary, and goodwill amortization and impairment as new risks.