Post-Acquisition Integration Failures and Goodwill Impairment Risk
First written in FY2020. 7 of 11 entries say "Materialised", first in FY2022. Latest entry: FY2026.
The whole theme swung hardest in 2024: 40 of 91 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「At the end of the current consolidated fiscal year, the company determined that the earnings originally expected from the goodwill related to イリテク株式会社, now MENTA株式会社, could no longer be expected and recognized the full unamortized balance of ¥90.265 million as an impairment loss under extraordinary losses. MENTA株式会社 was absorbed through a merger by the company in April 2026.」
As the expected earnings from the goodwill related to MENTA could no longer be expected, the company recognized the full unamortized balance of ¥90.265 million as an impairment loss. The risk of post-acquisition failure to achieve expected earnings and resulting impairment materialized again. - FY2025MitigatedAnnual report
「During the current consolidated fiscal year, the company determined that several asset groups showed indicators of impairment and considered whether it was necessary to recognize impairment losses. As the total undiscounted future cash flows exceeded the carrying amount of the fixed assets, it determined that recognition of impairment losses was not necessary.」
Goodwill related to the acquisitions totaled ¥310.856 million. Although the company assessed indicators of impairment, undiscounted future cash flows exceeded the carrying amount, and no impairment loss was recognized for the current fiscal year. - FY2024MaterialisedAnnual report
「Slower growth and deteriorating profitability at 株式会社ワークスタイルラボ became management issues.」
The company states that slower growth and deteriorating profitability at ワークスタイルラボ after its acquisition became management issues, and cites them as reasons for the absorption-type merger and structural reforms. - FY2023WorsenedAnnual report
「For イリテク株式会社, acquired in October 2020 and now MENTA株式会社, the company recorded a balance of ¥150.442 million, while for 株式会社ワークスタイルラボ, acquired in June 2022, it recorded a balance of ¥256.493 million.」
The goodwill balance totaled ¥406.936 million, including ¥150.442 million for MENTA and ¥256.493 million for ワークスタイルラボ, and the company continues to disclose the possibility of impairment due to changes in post-acquisition business plans and market conditions. - FY2022MaterialisedAnnual report
「As it determined that achieving the earnings originally expected from the goodwill related to “Lancers Creative” would be difficult, the company recognized the full unamortized balance of ¥207.695 million as an impairment loss under extraordinary losses.」
Following its complete withdrawal from the managed services business, achieving the expected earnings from the goodwill related to Lancers Creative became difficult, and the company recognized the full ¥207.695 million balance as an impairment loss. The impairment risk arising from post-acquisition integration failure and failure to achieve expected earnings materialized. - FY2021MitigatedAnnual report
「Following an assessment of indicators of impairment for the current consolidated fiscal year, the company determined that there were no such indicators and did not recognize an impairment loss on goodwill.」
The company states that there were no indicators of impairment or goodwill impairment losses related to シクロマーケティング and MENTA during the current consolidated fiscal year. - FY2020First statedAnnual report
「If the acquired business is not integrated as planned, it may become necessary to recognize an impairment loss on goodwill, which could have a material impact on the financial condition and results of operations of the Group.」
The company discloses the possibility of contingent and unrecognized liabilities arising from M&A, as well as goodwill impairment due to integration failure.