Failure to Achieve Expected Post-M&A Investment Benefits and Impairment Risk
First written in FY2022. 1 of 2 entries say "Mitigated", first in FY2023. Latest entry: FY2023.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
25 other companies' latest entry also says "Mitigated".
- FY2023MitigatedAnnual report
「Before implementing M&A, the Company will work to reduce risks by thoroughly examining measures to avoid risks identified through due diligence on the target company’s financial position, contractual relationships and other matters, as well as the possibility of recovering the investment.」
The risk of failing to achieve the expected investment benefits of M&A and impairment continues, while risk-reduction measures involving due diligence and examination of the possibility of recovering the investment have been specified. - FY2022First statedAnnual report
「If the expected investment benefits cannot be achieved due to changes in the business environment after an M&A transaction, contingent liabilities, the discovery of previously unrecognized liabilities or other problems that could not be identified through prior investigations, impairment losses on goodwill or other fixed assets may arise.」
Alongside the policy of pursuing M&A, changes in the post-transaction environment, previously unrecognized liabilities, failure to achieve investment benefits and the possibility of impairment were identified as risks.