Risk of Failure to Realize Acquisition Benefits, Integration Delays and Goodwill Impairment
First written in FY2021. 1 of 2 entries say "Mitigated", first in FY2023. Latest entry: FY2023.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2023MitigatedAnnual report
「The M&A Investment Committee selects M&A transactions that fit the company-wide management strategy and business strategies, and deliberates on M&A transactions to ensure that they are conducted through appropriate processes and with suitable structures and pricing. It also monitors the progress of post-M&A post-merger integration (PMI) projects.」
To address the risks of failure to realise acquisition synergies and integration delays, the company discloses a structure for selecting M&A transactions, deliberating on transaction pricing and monitoring the progress of post-acquisition PMI. - FY2021First statedAnnual report
「The company is also building relationships with other companies through various arrangements, including business alliances, joint ventures and strategic investments. These activities are important measures for the growth of the Group.」
While recognising the importance of M&A and alliances, the company newly organises the risks that expected benefits may not be realised owing to economic conditions, political circumstances, legal and regulatory changes, poor performance by target companies or partners, and integration delays, as well as the risk of impairment resulting from lower future cash flows.