Risk of an adverse impact on operating performance and financial position if M&A targets fall short of expectations
First written in FY2021-Q3. 2 of 4 entries say "Materialised", first in FY2023. Latest entry: FY2024.
Accrete moved to the "Worse" side of this theme in 2024, 2 years after the typical company in this theme (2022).
The whole theme swung hardest in 2018: 13 of 78 companies on the "Worse" side.
28 other companies' latest entry also says "Materialised".
- FY2024MaterialisedAnnual report
「For the customer-related assets of VietGuys J.S.C., we determined during the current consolidated fiscal year that there were indications of impairment after revising the business plan in response to changes in Vietnam's market environment.」
For VGS, the M&A target, we recognised an impairment loss of ¥425.463 million on customer-related assets following a revision of the business plan. - FY2023MaterialisedAnnual report
「At our consolidated subsidiary 株式会社Ｘｏｘｚｏ, goodwill and customer-related assets were recognised when the shares were acquired. However, the business has been performing below the business plan expected at the time of the acquisition. In revising the business plan based on future performance trends and other factors, we adjusted the number of SMS messages delivered to each business partner and determined that achieving the originally expected business plan would be difficult. As a result, we recognised an impairment loss.」
The risk of an M&A target falling short of expectations materialised at Xoxzo, and we recognised a total impairment loss of ¥230.334 million on goodwill, customer-related assets and other assets. - FY2021RaisedAnnual report
「株式会社テクノミックス and 株式会社Ｘｏｘｚｏ, which became subsidiaries during the current consolidated fiscal year, are expected to make significant contributions to our group's performance going forward. However, if their performance falls below initial expectations due to changes in the business environment or other factors, this may affect our group's operating performance and financial position.」
The scope of the M&A risk concerning performance falling short of expectations expanded from TechnoMix alone to TechnoMix and Xoxzo, 2 companies. - FY2021-Q3First statedAnnual report
「株式会社テクノミックス, which became a subsidiary during the third quarter of the current consolidated fiscal year, is expected to make a significant contribution to the performance of our group going forward. However, if its performance falls below initial expectations due to changes in the business environment or other factors, this may affect our group's operating performance and financial position.」
We have identified a new M&A-related risk that TechnoMix's contribution to operating performance as a subsidiary may fall below initial expectations due to changes in the business environment or other factors.