M&A Matching Becomes More Difficult as Buyer Investment Appetite Declines
First written in FY2020-Q3. 2 of 5 entries say "Restated". Latest entry: FY2024-Q1.
0 other companies' latest entry also says "Mitigated".
- FY2024-Q1MitigatedAnnual report
「Although the number of transactions declined, M&A value was reported to have increased 52.2% to ¥17.9 trillion, suggesting that willingness to invest in high-quality projects remains strong.」
Although the number of publicly disclosed transactions declined, M&A value increased 52.2% to ¥17.9 trillion, indicating that willingness to invest in high-quality projects remains strong. Factors mitigating the risk that reduced buyer willingness to invest will increase matching difficulty have strengthened. - FY2023MitigatedAnnual report
「On a value basis, the market increased 11.3% year on year, so the company judged that this did not necessarily represent an overall decline in willingness to invest and that substantial investment could still be made if attractive projects became available.」
Although the number of publicly disclosed transactions declined, M&A value increased 11.3%, indicating that overall willingness to invest was not necessarily declining. The company's view of the risk of reduced buyer willingness to invest has eased somewhat. - FY2022RestatedAnnual report
「However, if the spread of COVID-19 becomes prolonged, the M&A market could contract as companies become less willing to invest, and the reissuance of a state of emergency could disrupt business activities.」
The company reconfirmed its existing risk assessment that a decline in corporate willingness to invest could shrink the M&A market and that buyer willingness to invest could affect matching. - FY2021-Q3RestatedAnnual report
「The domestic M&A market for mid-sized and small companies had attracted attention as a solution to the social issue of a lack of successors. In Japan, however, M&A is increasingly being recognized by many business owners as an important growth strategy option, and we believe demand will continue to expand, with the aim of achieving synergies through M&A.」
This filing does not specifically restate the increase in matching difficulty due to reduced buyer willingness to invest, and instead presents the previous view that demand is expanding for growth strategies and synergy creation. - FY2020-Q3First statedAnnual report
「The number of M&A transactions between domestic companies declined 7.4% year on year, a relatively minor impact, but the continuing global spread of COVID-19 and concerns about a second wave in Japan could affect the willingness of companies considering acquisitions to invest because of uncertainty about the outlook. At the same time, the company expects more business owners to choose M&A in pursuit of business synergies or because they lack successors. If buyers' willingness to invest declines, matching sellers and buyers could become more difficult.」
The company explicitly identified as a new risk the possibility that reduced buyer willingness to invest could make it more difficult to match M&A sellers and buyers. The number of M&A transactions between domestic companies was quantified as down 7.4% year on year, while the increase in matching difficulty itself was described as a future possibility.