Risks of post-M&A benefits not materializing, contingent liabilities and goodwill impairment
First written in FY2023. 6 of 11 entries say "Materialised", first in FY2024. Latest entry: 2026-08-14.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「Following a review of the business plan, the Group determined that the originally projected earnings could no longer be expected. The carrying amount was therefore reduced to zero, and the reduction was recognized as an impairment loss under extraordinary losses.」
Impairment losses were recognized on goodwill of ¥67.662 million for AttendMe and ¥7.905 million for 既読 because the earnings initially anticipated could no longer be expected. The risks of unrealized post-M&A benefits and failure to meet the plan materialized as actual losses. - FY2025WorsenedAnnual report
「Under the agreement, contingent consideration of up to ¥16.2 million, in the form of earn-out consideration, may arise depending on the level of performance achieved over a specified period. It has not been finalized at this time.」
The acquisition of PINES as a subsidiary added new M&A-related exposure, with contingent consideration of up to ¥16.2 million potentially arising depending on the level of performance achieved. - FY2024MaterialisedAnnual report
「株式会社空色 has performed below the business plan prepared at the time of the acquisition, and sufficient cash flow cannot currently be expected. Accordingly, its carrying amount has been reduced to zero, with the decrease recognized as an impairment loss under extraordinary losses.」
空色 fell below the business plan prepared at the time of the acquisition and reached a state in which sufficient cash flow could not be expected. The previously disclosed risks of unrealized post-M&A benefits, failure to meet the plan and goodwill impairment materialized. - FY2023First statedAnnual report
「However, if the initially anticipated benefits are not realized, this may affect our group's business and performance. We conduct detailed due diligence on the target company's financial position, contractual arrangements and other matters, and make decisions after thoroughly examining the risks. Nevertheless, if issues that could not be identified through the preliminary investigation arise after the acquisition, such as contingent liabilities or previously unrecognized liabilities, if business development does not proceed as planned, or if goodwill impairment must be recognized, this may affect our group's business and performance.」
Alongside its policy of actively pursuing M&A, the company disclosed the non-realization of expected benefits, post-acquisition contingent and unrecognized liabilities, failure to meet plans and the possibility of goodwill impairment as new risks.