Alliance Termination, Failure to Achieve Synergies, and Post-Acquisition Issues
First written in FY2016. 4 of 8 entries say "Materialised", first in FY2017. Latest entry: FY2025.
GREE Holdings moved to the "Worse" side of this theme in 2017, 7 years before the typical company in this theme (2024).
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
60 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「We aim to generate significant synergies by combining the business operating know-how and other capabilities of the Group and its alliance and joint-venture partners. However, if the expected benefits are not realized or these alliances and other arrangements are dissolved, the Group's business development and financial performance may be affected.」
The risks of failing to achieve synergies from alliances and joint ventures and of alliance dissolution are reiterated. - FY2024RestatedAnnual report
「We aim to generate significant synergies by combining the business operating know-how and other capabilities of the Group and its alliance and joint-venture partners. However, if the expected benefits are not realized or these alliances and other arrangements are dissolved, the Group's business development and financial performance may be affected.」
The risks of failing to achieve synergies from alliances and joint ventures and of alliance dissolution are reiterated. - FY2023RestatedAnnual report
「We aim to generate significant synergies by combining the business operating know-how and other capabilities of the Group and its alliance and joint-venture partners. However, if the expected benefits are not realized or these alliances and other arrangements are dissolved, the Group's business development and financial performance may be affected.」
The risks of failing to achieve synergies from alliances and joint ventures and of alliance dissolution are reiterated. - FY2020-Q2MaterialisedAnnual report
「Fantasy Legend Studios, Inc. was excluded from the scope of consolidation from the current second-quarter consolidated accounting period because its liquidation had been completed.」
The completion of the liquidation of acquired company Fantasy Legend Studios was an organizational event. This report provides no additional explanation of whether post-acquisition synergies were realized or earnings targets were met. - FY2019MaterialisedAnnual report
「The full carrying amount of goodwill and other assets arising from the acquisition of consolidated subsidiary 株式会社ORATTA has been impaired because the earnings expected at the time of the acquisition are no longer anticipated.」
Goodwill and other assets arising from the acquisition of ORATTA were impaired after the expected earnings ceased to be achievable, resulting in an impairment loss of ¥402 million. - FY2018MaterialisedAnnual report
「The full carrying amount of goodwill arising from the acquisition of 株式会社３ミニッツ, a consolidated subsidiary, has been recognized as an impairment loss because the earnings expected at the time of the acquisition are no longer anticipated.」
Goodwill arising from the acquisition of 株式会社3ミニッツ was impaired after the expected earnings ceased to be achievable, resulting in an impairment loss of ¥3,150 million. - FY2017MaterialisedAnnual report
「If problems that could not be identified through prior investigations arise at an acquired company, such as contingent liabilities or previously unrecognized liabilities, or if business development and other activities do not progress as planned, goodwill may need to be impaired, potentially affecting the business development and financial performance of the Group.」
Goodwill and intangible assets arising from the acquisition of Fantasy Legend Studios and other companies were impaired after the expected earnings ceased to be achievable, resulting in an impairment loss of ¥4,107 million. - FY2016First statedAnnual report
「For M&A transactions, we conduct detailed due diligence on the financial condition and contractual relationships of the target company and make decisions after carefully assessing the risks. However, if problems not identified in the preliminary investigation arise, such as contingent liabilities or previously unrecognized liabilities at the acquired company, or if business development does not proceed as planned, this could affect the business development and financial results of our group, including by requiring the impairment of goodwill.」
While using business and capital alliances and M&A as growth strategies, it cites unrecognized liabilities, failure to meet plans, and goodwill impairment among the risks.