Risks of undisclosed liabilities, integration and failure to achieve business plans after M&A
First written in FY2022. 2 of 4 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
60 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「If problems not identified through due diligence arise after an acquisition, such as previously unrecognized liabilities or contingent liabilities, if the acquired business does not develop as planned, if maintaining the acquired business incurs higher-than-expected costs, or if a business partner later becomes a competitor and uses know-how or other information acquired during its partnership with the group, the group’s business results could be affected.」
The company continues to address risks relating to undisclosed liabilities, integration, failure to achieve business plans, maintenance costs and counterparties becoming competitors following M&A, including the acquisition of Thinkings and other companies. - FY2023RestatedAnnual report
「If problems not identified through due diligence arise after an acquisition, such as previously unrecognized liabilities or contingent liabilities, if the acquired business does not develop as planned, if maintaining the acquired business incurs higher-than-expected costs, or if a business partner later becomes a competitor and uses know-how or other information acquired during its partnership with the group, the group’s business results could be affected.」
The company continues to disclose risks relating to undisclosed liabilities after M&A, integration, failure to achieve business plans, maintenance costs and alliance partners becoming competitors. - FY2023-Q1AdvancedAnnual report
「The business combination with IEYASU株式会社 completed on 1 November 2021 was accounted for provisionally in the previous consolidated fiscal year, but the accounting treatment was finalized in the first quarter of the current fiscal year.」
For the business combinations involving IEYASU and EasySoft, the previously provisional purchase price allocation accounting was finalized during the quarter, advancing the post-acquisition accounting treatment. - FY2022First statedAnnual report
「If problems not identified through due diligence arise after an acquisition, such as previously unrecognized liabilities or contingent liabilities, if the acquired business does not develop as planned, if maintaining the acquired business incurs higher-than-expected costs, or if a business partner later becomes a competitor and uses know-how or other information acquired during its partnership with the group, the group’s business results could be affected.」
Separate from goodwill impairment risk, the company independently discloses risks relating to liabilities not identified through M&A due diligence, post-acquisition integration and business development, maintenance costs, and alliance partners becoming competitors.