Unexpected Events and Failure to Meet Plans Following M&A
First written in FY2020. 2 of 5 entries say "Materialised", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「The entire amount of goodwill and other intangible assets recognized at the time of the acquisition of Coleman Research Group, Inc. was reduced through impairment losses in the fiscal year ended February 2024.」
Impairment resulting from failure to meet the post-acquisition business plan and a decline in asset value continues to be disclosed as an actual occurrence. - FY2025MaterialisedAnnual report
「The entire amount of goodwill and other intangible assets recognized at the time of the acquisition of Coleman Research Group, Inc. was reduced through impairment losses in the fiscal year ended February 2024.」
The risk of impairment resulting from failure to meet the post-M&A business plan and a decline in asset value actually materialized as the entire amount of goodwill and other assets related to Coleman Research Group, Inc. was impaired, and this continues to be disclosed. - FY2022-Q3WorsenedAnnual report
「If the business plan after the acquisition does not progress as planned, the Group may need to recognize impairment of goodwill, which may affect its operating results and financial position. In addition, the money loan agreement used to finance the acquisition of that company, which had been executed during the nine-month period ended the third quarter of the current fiscal year and totaled ¥4.0 billion, includes financial covenants concerning the amount of net assets in the net assets section of the consolidated balance sheet at the end of each fiscal year and operating income or loss in the consolidated income statement for each fiscal year. If these covenants are breached, the Group may be required to repay the borrowings.」
The disclosure has developed from general M&A risks into specific risks associated with the completed acquisition of Coleman Research Group, Inc., including failure to meet the business plan, impairment of goodwill, ¥4.0 billion in borrowings and financial covenants. - FY2021ReframedAnnual report
「For the purpose of expanding the Group's business and for other purposes, the Group is considering investments, including M&A, capital investments and the establishment of subsidiaries, in Japan and overseas, as one of its business development options.」
The scope has been organized and expanded from the previous focus on M&A to investments generally, including capital investments and the establishment of subsidiaries in Japan and overseas. - FY2020First statedAnnual report
「Although we do not currently anticipate any specific transactions, we are considering M&A as one of the options for business development, with the aim of expanding our business and for other purposes.」
Although no specific transaction is currently anticipated, the Company positions M&A as a future option and describes a policy of reducing risk through due diligence.