Investment Recovery Risk in M&A and Capital and Business Alliances
First written in FY2018. 8 of 12 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2020: 28 of 84 companies on the "Worse" side.
88 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「We are actively pursuing M&A and alliance investments to expand our business domains while managing a substantial portfolio of financial instruments. Accordingly, if M&A and alliances fail to produce the effects originally expected, or if financial markets fluctuate significantly, the value of financial instruments held may decline, resulting in valuation losses on goodwill and securities and potentially affecting the operating results and other aspects of our corporate group.」
While continuing M&A and alliance investments and managing a substantial portfolio of financial instruments, the group has reorganized the risks of failure to achieve the expected investment effects, goodwill and securities valuation losses, and market fluctuations as its principal risks. - FY2024-Q3MaterialisedAnnual report
「In January 2024, the boards of directors of our company, our consolidated subsidiary 日本ソフトウェアデザイン㈱ and メクゼス agreed on a policy for an organizational restructuring among the 3 companies. Accordingly, during the nine-month period of the current consolidated fiscal year, an impairment loss of ¥209 million was recognized as an extraordinary loss on goodwill related to 日本ソフトウェアデザイン㈱.」
An impairment loss of ¥209.564 million was recognized on goodwill related to 日本ソフトウェアデザイン㈱ because the earnings originally planned were no longer expected, bringing the investment recovery risk associated with M&A and organizational restructuring to the surface in the accounts. - FY2022-Q2RestatedAnnual report
「As part of its growth strategy, our corporate group is also actively pursuing business investments, including M&A, alliances, and research and development of new technologies. However, these investments depend on and are affected by domestic and overseas economic conditions and trends in technological innovation, which may result in opportunity losses and become a factor materially affecting operating results.」
While continuing to invest in M&A, alliances and research and development of new technologies, the group continues to disclose the risk of opportunity losses caused by economic conditions and technological innovation. - FY2021MaterialisedAnnual report
「In addition, the group recognized an impairment loss of ¥149.475 million on goodwill during the consolidated fiscal year.」
Because the performance of a major customer deteriorated and results after the acquisition fell short of expectations, the excess earning power anticipated at the time of acquisition was no longer expected, and goodwill impairment actually occurred. The total impairment loss was ¥175.188 million. - FY2021-Q3RestatedAnnual report
「As part of its growth strategy, our corporate group is also actively pursuing business investments, including M&A, alliances, and research and development of new technologies. However, these investments depend on and are affected by domestic and overseas economic conditions and trends in technological innovation, which may result in opportunity losses and become a factor materially affecting operating results.」
While continuing to invest in M&A, alliances and research and development of new technologies, the group continues to face the risk of opportunity losses caused by economic conditions and technological innovation. - FY2020RestatedAnnual report
「In addition to its core software development business, our corporate group is actively pursuing M&A and capital and business alliances to expand the scale of its businesses related to advanced technologies, such as AI and cloud computing, and new business fields, broaden its business domains and strengthen its earnings base.」
While expanding the business through M&A and capital and business alliances, the group continues to face risks including failure to achieve the expected investment effects, reduced recoverability, restructuring costs and goodwill impairment. - FY2020-Q2RestatedAnnual report
「Our corporate group is actively pursuing M&A and investments in partner companies to expand its businesses. However, developments at those companies could have a material effect on operating performance.」
While expanding the business through M&A and investments in partner companies, the group continues to disclose the risk that developments at investee companies may affect operating results. - FY2020-Q1RestatedAnnual report
「Our corporate group is actively pursuing M&A and investments in partner companies to expand its businesses. However, developments at those companies could have a material effect on operating performance.」
While expanding the business through M&A and investments in partner companies, the group continues to disclose the risk that developments at investee companies may affect operating results. - FY2019RestatedAnnual report
「Our corporate group is actively pursuing M&A and investments in partner companies to expand its business, but developments at these companies may have a material impact on our operating results.」
While expanding the business through M&A and investments in partner companies, the group continues to face risks that developments at investee companies and recoverability may affect operating results. - FY2019-Q3MaterialisedAnnual report
「With respect to goodwill, the company recognised an impairment loss of ¥16,840 thousand as an extraordinary loss because the excess earning power anticipated by Cresco Kyushu Co., Ltd., a consolidated subsidiary of the company, at the time it acquired the business was no longer expected to materialise.」
The goodwill recognized in connection with the acquisition of a business was impaired because the expected excess earning power was no longer anticipated, resulting in an impairment loss of ¥16.840 million. This is an actual instance of reduced recoverability of M&A and business investment. - FY2019-Q2RestatedAnnual report
「Our corporate group is actively pursuing M&A and investments in partner companies to expand its businesses. However, developments at those companies could have a material effect on operating performance.」
While pursuing business expansion through M&A and investments in partner companies, the company continues to describe the risk that developments at investee companies could affect operating performance. - FY2018First statedAnnual report
「However, changes in the business environment and other factors may prevent the company from generating the profits initially expected, reducing the recoverability of the investment.」
For its active M&A and capital and business alliances, the company describes as risks the failure to achieve the expected investment effects, lower recoverability, business restructuring costs, and the possibility of additional investment.