Risk of Inadequate Due Diligence in M&A and Alliances and Unrealized Synergies
First written in FY2024. 1 of 2 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2025: 9 of 30 companies on the "Worse" side.
36 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「When conducting M&A, the company conducts detailed due diligence on the target company’s financial condition, contractual relationships and other matters and strives to avoid risks. However, sufficient due diligence may not be possible because of time constraints, and contingent liabilities may arise after the acquisition.」
The company continues to disclose risks related to insufficient due diligence, contingent liabilities, unrealized synergies, and termination of alliances in M&A and business alliances. - FY2024First statedAnnual report
「When conducting M&A, the company conducts detailed due diligence on the target company’s financial condition, contractual relationships and other matters and strives to avoid risks. However, sufficient due diligence may not be possible because of time constraints, and contingent liabilities may arise after the acquisition.」
While positioning M&A and business alliances as means of achieving growth, the company newly disclosed insufficient due diligence, contingent liabilities after acquisitions, failure to realize expected effects or synergies, and termination of alliances as risks.