Risks of unforeseen liabilities, goodwill impairment and failure to achieve synergies following corporate acquisitions
First written in FY2017-Q1. 5 of 7 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2025MaterialisedAnnual report
「In the fiscal year ended September 2025, the company recognized impairment losses on right-of-use assets and other assets as a result of recording consecutive operating losses. It recognizes restoring operating performance in the fiscal year ending September 2026 as an urgent issue.」
Following consecutive operating losses at レコフ, the company recognized an impairment loss of ¥823 million on right-of-use assets and other assets. The risks of failure to achieve earnings contributions and synergies after the acquisition and declining asset valuations have materialized as actual losses. - FY2022RestatedAnnual report
「If the expected cash flows can no longer be generated in the future due to a deterioration in the management environment or other factors, the company may write down the asset's value.」
While valuing goodwill after considering the performance and business plans of subsidiaries, the company continues to disclose the risk of a write-down due to deterioration in future cash flows. - FY2018RestatedAnnual report
「Although the company seeks to minimize risks by conducting due diligence on target companies, if unexpected liabilities or other issues arise after an acquisition, or if the expected contribution to earnings and synergies cannot be fully achieved due to changes in the management or business environment, it may become necessary to recognize an impairment loss on goodwill, which could affect the company's operating performance and financial condition.」
While conducting due diligence, the company continues to disclose the risks of unexpected liabilities after an acquisition, failure to achieve synergies, and goodwill impairment. - FY2017RestatedAnnual report
「Although the company seeks to minimize risks by conducting due diligence on target companies, if unexpected liabilities or other issues arise after an acquisition, or if the expected contribution to earnings and synergies cannot be fully achieved due to changes in the management or business environment, it may become necessary to recognize an impairment loss on goodwill, which could affect the company's operating performance and financial condition.」
While conducting due diligence, the company continues to disclose the risks of unexpected liabilities after an acquisition, failure to achieve earnings contributions and synergies, and goodwill impairment. - FY2017-Q3RestatedAnnual report
「Although the company seeks to minimize risks by conducting due diligence on target companies, if unexpected liabilities or other issues arise after an acquisition, or if the expected contribution to earnings and synergies cannot be fully achieved due to changes in the management or business environment, it may become necessary to recognize an impairment loss on goodwill, which could affect the company's operating performance and financial position.」
The company continues to identify as material risks the unexpected liabilities, failure to achieve earnings contributions and synergies, goodwill impairment, and internal control problems at acquired companies following an acquisition. - FY2017-Q2RestatedAnnual report
「The company intends to conduct acquisitions and other transactions to expand its existing M&A-related services business and enter financial services areas derived from that business, thereby expanding its business scale. Although it seeks to minimize risks by conducting due diligence on target companies, if unexpected liabilities or other issues arise after an acquisition, or if the expected contribution to earnings and synergies cannot be fully achieved due to changes in the management or business environment, it may become necessary to recognize an impairment loss on goodwill, which could affect the company's operating performance and financial position. In addition, if the acquired company has internal control problems that cannot be corrected promptly, the company's credibility may decline.」
The company has reiterated as material risks from the previous fiscal year the unexpected liabilities, failure to achieve earnings contributions and synergies, goodwill impairment, and internal control problems at acquired companies associated with acquisitions. - FY2017-Q1First statedAnnual report
「If unexpected liabilities or other issues arise after an acquisition, or if the expected contribution to earnings and synergies cannot be fully achieved due to changes in the management or business environment, it may become necessary to recognize an impairment loss on goodwill, which could affect the company's operating performance and financial position. In addition, if the acquired company has internal control problems that cannot be corrected promptly, the company's credibility may decline.」
While using acquisitions as a means of expansion, the company has disclosed new risks involving off-balance-sheet liabilities after acquisitions, failure to achieve earnings contributions and synergies, goodwill impairment, and internal control problems at acquired companies.