Risk of underperformance in business development after M&A and goodwill impairment
First written in FY2017. 2 of 6 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2022.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2022MaterialisedAnnual report
「Goodwill is recognized as an extraordinary loss in the form of an impairment loss for the unamortized balance when the earnings assumed at the time of acquisition can no longer be expected.」
Regarding the risk of impairment if post-M&A business development does not progress as expected, a goodwill impairment loss of ¥278 million was recognized during the current consolidated fiscal year. - FY2022-Q3Cited as achievedAnnual report
「Quarterly net income attributable to owners of the parent was ¥5,037 million, up 70.8% year on year.」
The absence of the goodwill impairment loss recognized in the same period of the previous year is cited, together with historical results, as a factor behind the increase in quarterly net income attributable to owners of the parent for the nine months ended the third quarter. - FY2021-Q1MaterialisedAnnual report
「Quarterly net income attributable to owners of the parent was ¥618 million, down 67.8% year on year.」
An impairment loss of ¥235 million was recognized in the first quarter, reflecting impairment of goodwill related to 株式会社JapanWork. The filing states that the post-M&A impairment risk materialized. - FY2020MitigatedAnnual report
「When conducting M&A or similar transactions, our Group conducts detailed due diligence and reviews in advance of the target company's financial position, contractual relationships and other matters, and endeavors to eliminate uncertainty as far as possible.」
Although the risk of impairment and other charges after M&A remains, detailed advance due diligence on financial information and contractual relationships was specifically identified as a mitigation measure. - FY2018RestatedAnnual report
「However, if, after an M&A transaction, the Group is unable to conduct business as planned because of contingent liabilities or changes in the business environment, impairment charges on goodwill or shares of affiliated companies may arise and could affect our Group's performance.」
The company continues to disclose the risk of impairment resulting from failure to meet post-M&A plans, contingent liabilities and other factors. - FY2017First statedAnnual report
「However, if, after an M&A transaction, the Group is unable to conduct business as planned because of contingent liabilities or changes in the business environment, impairment charges on goodwill or shares of affiliated companies may arise and could affect our Group's performance.」
While maintaining a policy of pursuing further M&A, the company describes the risk of impairment resulting from failure to meet post-acquisition plans, contingent liabilities and other factors.