Contingent Liabilities, Failure to Meet Plans and Goodwill Impairment Risks Associated with M&A-Driven Business Expansion
First written in FY2023. 2 of 4 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2026WorsenedAnnual report
「If issues that could not be identified through due diligence arise after an acquisition, such as contingent liabilities or previously unrecognized liabilities, if business development or other matters do not proceed as planned, or if goodwill impairment becomes necessary, this could affect the Group's business and results of operations.」
As M&A progressed, the goodwill balance increased from ¥2,032.282 million to ¥4,935.938 million, and SPIN TECHNOLOGY, 悟空テクノロジーズ, ONE-TECH and リクソル became new subjects of impairment testing. For リクソル, it is disclosed that the recoverable amount and carrying amount could become equal if the discount rate rises by 5.9 percentage points, while no impairment has occurred. - FY2025RestatedAnnual report
「If issues that could not be identified through due diligence arise after an acquisition, such as contingent liabilities or previously unrecognized liabilities, if business development or other matters do not proceed as planned, or if goodwill impairment becomes necessary, this could affect the Group's business and results of operations.」
The risks of contingent liabilities, failure to meet plans and goodwill impairment associated with M&A continue to be disclosed. - FY2024RestatedAnnual report
「If issues that could not be identified through due diligence arise after an acquisition, such as contingent liabilities or previously unrecognized liabilities, if business development or other matters do not proceed as planned, or if goodwill impairment becomes necessary, this could affect the Group's business and results of operations.」
The risks of contingent liabilities, failure to meet plans and goodwill impairment associated with M&A are reiterated. - FY2023First statedAnnual report
「If issues that could not be identified through due diligence arise after an acquisition, such as contingent liabilities or previously unrecognized liabilities, if business development or other matters do not proceed as planned, or if goodwill impairment becomes necessary, this could affect the Group's business and results of operations.」
New risks are described, including liabilities not identified through M&A due diligence, failure to meet plans and goodwill impairment.