Risk of Failure to Achieve Expected Results Following Acquisitions
First written in FY2019. 1 of 3 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2025: 11 of 38 companies on the "Worse" side.
15 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「Positioning “EV/EBITDA multiple setting,” “positive operating income before goodwill amortization,” and “achieving an investment recovery rate exceeding WACC within 36 months” as its 3 disciplines,」
The company has introduced specific investment disciplines for the risk of failing to achieve results after M&A: EV/EBITDA, operating income before goodwill amortization, and achieving an investment recovery rate exceeding WACC within 36 months. - FY2022RestatedAnnual report
「As part of its growth strategy, the Group may conduct acquisitions to enter new business areas, acquire new technologies and business platforms, and strengthen the competitiveness of existing businesses.」
The company uses M&A to enter new fields, acquire new technologies and business platforms, and strengthen existing businesses, and has reconfirmed the risk of failing to achieve results after an acquisition. - FY2019First statedAnnual report
「As part of its group strategy, the Group may conduct acquisitions to enter new business areas, acquire new technologies and business platforms, and strengthen the competitiveness of existing businesses. It conducts thorough investigations and reviews before proceeding with each acquisition. However, if the expected results are not fully achieved after an acquisition, this could have a material impact on the Group's performance.」
Newly discloses separately the risk of failing to achieve expected results after M&A aimed at entering new fields and acquiring new technologies and business platforms.