Risk of Failing to Recover Invested Capital Due to Changes in Market Conditions Following an Acquisition
First written in FY2021. 3 of 5 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2020: 28 of 84 companies on the "Worse" side.
21 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「In considering M&A, the Group takes into account trends in the target market, customer needs, the target company's performance, financial condition, technological advantages and market competitiveness, future business plans, synergies, and the results of risk analyses associated with the M&A. Before an acquisition, the Group investigates the target company's actual condition and the presence or absence of issues through due diligence conducted with the assistance of specialists. After an acquisition, it establishes and promotes new management and governance structures to support the enhancement of corporate value and long-term growth.」
The Group specified pre-acquisition due diligence and the establishment of post-acquisition management and governance structures as measures to address the risk of difficulty recovering invested capital due to changes in the market environment after an acquisition. - FY2024-Q3RestatedAnnual report
「No new business or other risks arose during the nine months ended 31 December. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The Group states that there have been no material changes regarding the risk of recovering invested capital due to post-acquisition changes in the market environment. - FY2024-Q2RestatedAnnual report
「No new business or other risks arose during the six months ended 30 September. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The Group states that there have been no material changes regarding the risk of recovering invested capital due to post-acquisition changes in the market environment. - FY2022-Q2RestatedAnnual report
「No new business or other risks arose during the six months ended 30 September. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The Group states that there have been no material changes regarding the risk of recovering invested capital due to post-acquisition changes in the market environment. - FY2021First statedAnnual report
「The Group considers M&A an effective means of acquiring technologies needed to accelerate business growth and establishing a competitive advantage in the market. However, significant changes in the market or competitive environment after an acquisition may make it difficult to recover invested capital and, consequently, could have a material impact on the Group's performance.」
While positioning M&A as a growth strategy, the Group separately disclosed for the first time the difficulty of recovering invested capital due to changes in the market and competitive environments after an acquisition as a risk.