Risk that the profitability and synergies anticipated from the M&A will not be realized
First written in FY2018. 4 of 6 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2025: 11 of 36 companies on the "Worse" side.
9 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「To mitigate these risks, we will conduct thorough deliberations by the Board of Directors and obtain support from specialists as part of our preliminary analysis, review, and evaluation, while also properly advancing the post-acquisition integration process.」
As measures to address M&A risks, the company explicitly identifies specialist support, Board of Directors deliberations, and the post-acquisition integration process. - FY2022RestatedAnnual report
「The group may conduct M&A to expand its businesses and shift from low-profitability businesses to high-profitability businesses. Before doing so, it will conduct sufficient analysis, consideration, and evaluation, but if the initially expected profitability or synergies are not achieved, this could affect the group’s financial condition and operating results.」
The company continues to pursue business expansion and improved profitability through M&A, while identifying the risk of failing to achieve the projected profitability and synergies. - FY2021RestatedAnnual report
「The group may conduct M&A to expand its businesses and shift from low-profitability businesses to high-profitability businesses. Before doing so, it will conduct sufficient analysis, consideration, and evaluation, but if the initially expected profitability or synergies are not achieved, this could affect the group’s financial condition and operating results.」
The company uses M&A as a means of expanding its business and improving profitability, and continues to identify the risk of failing to achieve the projected profitability and synergies. - FY2020RestatedAnnual report
「The group may conduct M&A to expand its businesses and shift from low-profitability businesses to high-profitability businesses. Before doing so, it will conduct sufficient analysis, consideration, and evaluation, but if the initially expected profitability or synergies are not achieved, this could affect the group’s financial condition and operating results.」
The company uses M&A as a means of shifting to highly profitable businesses and continues to identify the risk of failing to achieve the projected profitability and synergies. - FY2019RestatedAnnual report
「The Group may conduct M&A to accelerate or broaden its business expansion. When carrying out such transactions, we will conduct thorough analysis, review, and evaluation in advance. However, if the profitability or synergies initially projected are not achieved, this could affect the Group’s financial position and operating results.」
While using M&A as a means of expanding its business, the company continues to disclose the risk of failing to achieve the projected profitability and synergies. - FY2018First statedAnnual report
「The Group may conduct M&A to accelerate or broaden its business expansion. When carrying out such transactions, we will conduct thorough analysis, review, and evaluation in advance. However, if the profitability or synergies initially projected are not achieved, this could affect the Group’s financial position and operating results.」
In connection with the possibility of conducting M&A, the company is explicitly identifying for the first time as a risk the potential impact on its financial position and operating results if the projected profitability and synergies are not achieved.