Risk of Failure to Realize Post-M&A Synergies and Goodwill Impairment
First written in FY2024-Q3. 2 of 3 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2025RestatedAnnual report
「However, the integration and utilization of management resources may not proceed smoothly after completion, the business may not expand as anticipated, and goodwill or other assets may consequently require impairment treatment, which could affect the group's operating results.」
The risks of post-M&A integration problems, failure to achieve synergies and goodwill impairment were reaffirmed alongside the continuation of the M&A policy. - FY2024RestatedAnnual report
「The company's consolidated or non-consolidated results and financial position may be affected if unexpected contingent liabilities arise or if the company fails to realize the business expansion or synergies anticipated when the subsidiary was acquired, including through the recognition of an impairment loss on the goodwill in question.」
The full-year disclosure specified goodwill of ¥536.965 million arising from the acquisition of ウェブスペース株式会社, along with the risks of failing to achieve synergies, contingent liabilities and impairment. - FY2024-Q3First statedAnnual report
「The group's operating results and financial position may be affected by the emergence of unexpected contingent liabilities or changes in the business environment, which could prevent the company from achieving the synergies and business expansion it anticipated and result in an impairment loss on the goodwill in question.」
New M&A-related risks were added in connection with the acquisition of ウェブスペース株式会社. Goodwill of ¥536.965 million was recognized, but there was no disclosure that contingent liabilities, failure to achieve synergies or goodwill impairment had occurred.