Risks of Expanding the Business Through M&A
First written in FY2016. 3 of 5 entries say "Restated". Latest entry: FY2019.
The whole theme swung hardest in 2018: 13 of 78 companies on the "Worse" side.
99 other companies' latest entry also says "Restated".
- FY2019RestatedAnnual report
「Even after an acquisition, if post-merger integration (PMI) does not proceed smoothly despite our group providing its expertise and resources, or if the objectives cannot be achieved because the expected earnings or benefits are not obtained due to factors beyond our group’s control, such as a deterioration in market and economic conditions, this may affect our group’s results of operations and financial position.」
Risks relating to securing acquisition opportunities, PMI, failure to achieve expected earnings, and management decisions by minority-investment recipients continue to be disclosed. - FY2019-Q2WorsenedAnnual report
「Even after an acquisition, if post-merger integration (PMI) does not proceed smoothly despite our group providing its expertise and resources, or if the objectives cannot be achieved because the expected earnings or benefits are not obtained due to factors beyond our group’s control, such as a deterioration in market and economic conditions, this may affect our group’s results of operations and financial position. In minority investments, the management of the investee may make decisions contrary to our group’s intentions, or our group may be forced to sell its investment interest contrary to its intentions or on unfavorable terms.」
In addition to the existing risk of failing to achieve expected earnings, risks relating to poor PMI and management decisions and the sale of interests by minority-investment recipients have been added. - FY2018RestatedAnnual report
「In M&A transactions, if the expected earnings or benefits from an individual transaction are not achieved and its objectives therefore cannot be met, this may affect our group’s results of operations and financial position.」
The risk of failing to achieve the expected earnings and benefits from M&A continues to be disclosed. - FY2017RestatedAnnual report
「However, if the expected earnings or benefits are not achieved and the intended objectives cannot be met, this could affect the performance of our Group.」
The risk of failing to obtain the expected earnings and benefits from M&A continues to be disclosed. - FY2016First statedAnnual report
「However, if the expected earnings or benefits are not achieved and the intended objectives cannot be met, this could affect the performance of our Group.」
This risk accompanies the policy of using M&A to bring companies with equipment, technology, and know-how into the Group.