Declining Profitability of Business Acquisitions and Investments and Impairment Risk
First written in FY2023. 1 of 2 entries say "Mitigated", first in FY2024. Latest entry: FY2024.
The whole theme swung hardest in 2019: 10 of 27 companies on the "Worse" side.
10 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「When making business investments or acquisitions, the Group carefully investigates the target's management conditions and market trends through prior due diligence and other measures. After a business joins the Group, the Group also seeks to improve its performance through information sharing among Group companies and sharing existing sales networks, as it does with its existing subsidiaries.」
In response to declining profitability and impairment risks associated with business investments and acquisitions, the Company specified the use of prior investigations, information sharing across the Group, and shared sales networks. - FY2023First statedAnnual report
「To respond to changes in the operating environment, the Group is actively considering and executing acquisitions of, and investments in, companies and businesses in the same or related industries. However, these transactions may not necessarily proceed as expected due to internal or external factors. Damage to acquired assets or declining profitability could affect the Group's performance through impairment of goodwill or fixed assets and losses on valuation of investment securities.」
Alongside its policy of actively pursuing acquisitions and business investments, the Company newly disclosed risks relating to damage to acquired assets, declining profitability, impairment of goodwill and fixed assets, and losses on valuation of investment securities.