Post-M&A Business Development and Impairment Risk
First written in FY2024. 3 of 6 entries say "Materialised", first in 2026-07-14. Latest entry: FY2026.
The whole theme swung hardest in 2024: 37 of 90 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「An impairment loss of ¥164.928 million was recognized on goodwill identified at the time of the acquisition of 株式会社ＥＲＩＲｏｂｏｔｉｃｓ. Because the earnings initially anticipated from the acquisition of shares in 株式会社ＥＲＩＲｏｂｏｔｉｃｓ are no longer expected to be generated, the carrying amount of the goodwill was reduced to its recoverable amount. The resulting reduction of ¥164.928 million was recognized as an impairment loss under extraordinary losses.」
The impairment risk associated with failure to meet post-M&A plans, which had been disclosed as a future risk through the previous fiscal year, materialized as an impairment loss of ¥164.928 million on goodwill related to the acquisition of ERI Robotics. - FY2026-H1WorsenedAnnual report
「Goodwill 819,697 1,007,846」
The goodwill balance increased by ¥188.149 million, from ¥819.697 million at the end of the previous fiscal year to ¥1,007.846 million. Goodwill related to the acquisitions of ERI Inspection Center and TOMPLA was recognized, increasing exposure to potential impairment if post-acquisition plans are not achieved. No impairment has been reported. - FY2025WorsenedAnnual report
「Goodwill 319,708 819,697」
As M&A activities continued, the goodwill balance increased from ¥319.708 million in the previous fiscal year to ¥819.697 million. Although the Company determined that there were no indications of impairment during the fiscal year, its exposure to the risk of impairment if post-acquisition business plans are not achieved has increased. - FY2024First statedAnnual report
「Our Group uses M&A and other measures as part of its business expansion initiatives and will continue to do so as necessary. However, M&A and similar transactions are based on forecasts of the future and involve uncertainty. When conducting M&A and similar transactions, our Group carries out detailed due diligence and reviews of the target company's financial condition, contractual relationships and other matters in advance, seeking to eliminate uncertainty as far as possible. Nevertheless, if contingent liabilities arise or the business environment changes after an M&A transaction, preventing the business from developing as planned, impairment losses on goodwill or shares of affiliated companies may be recognized, potentially affecting our Group's performance.」
The Company stated for the first time, as a standalone risk, that it will continue to use M&A as a means of business expansion and that contingent liabilities after an acquisition, changes in the business environment, failure to meet plans, and impairment of goodwill and shares of affiliated companies could affect performance.