Risk of Unrealized Synergies and Goodwill Impairment Associated with M&A and Business Alliances
First written in FY2019-Q2. 5 of 12 entries say "Materialised", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2024: 39 of 91 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「For goodwill and intangible fixed assets arising from the acquisition of ファスフォードテクノロジ株式会社, the Company reduced their carrying amounts to recoverable amounts because uncertainty had increased regarding the ability to generate the earnings initially anticipated at the time of the acquisition, amid significant changes in the semiconductor market and competitive environment, and recognized the resulting ¥9.691 billion reduction as an impairment loss under extraordinary losses.」
The unrealized synergy and goodwill impairment risk associated with the M&A has materialized as an impairment loss totaling ¥9.691 billion for FFT, comprising ¥7.135 billion on goodwill and ¥2.556 billion on acquisition-related intangible fixed assets. - FY2025MaterialisedAnnual report
「During the fiscal year, the Company reduced the carrying amounts of goodwill and intangible fixed assets arising from the acquisition of Fuji Machine Asia Private Limited to recoverable amounts because the earnings initially anticipated could no longer be expected, and recognized the resulting ¥854 million reduction as an impairment loss under extraordinary losses.」
For FMA, the earnings initially anticipated could no longer be expected, and impairment losses totaling ¥854 million were recognized, comprising ¥133 million on goodwill and ¥721 million on acquisition-related intangible fixed assets. The unrealized synergy and goodwill impairment risk associated with the M&A has materialized. - FY2022MitigatedAnnual report
「Through the fiscal year, FFT's performance had remained above the business plan projected at the time of acquisition, and there were no indications of impairment. Accordingly, the Company determined that the value of goodwill had not been impaired.」
Reconfirmed that FFT's performance exceeded the business plan prepared at the time of acquisition and that there were no indications of impairment. The unamortized goodwill balance was ¥10.941 billion. - FY2021MitigatedAnnual report
「Through the fiscal year, FFT's performance had remained above the business plan projected at the time of acquisition, and there were no indications of impairment. Accordingly, the Company determined that the value of goodwill had not been impaired.」
Disclosed that FFT's performance exceeded the business plan prepared at the time of acquisition and that there were no indications of impairment, showing that the goodwill impairment risk associated with the M&A had not materialized at that point. - FY2020RestatedAnnual report
「Goodwill of ¥12.844 billion was recognized at the end of the fiscal year. If FFT's profitability declines in the future due to changes in the business environment or other factors, or if the synergies initially anticipated are not realized, the recognition of an impairment loss on goodwill could affect the Group's operating results and financial position.」
Updated the goodwill balance associated with FFT to ¥12.844 billion and continued to disclose the impairment risk arising from lower profitability and unrealized synergies. - FY2019WorsenedAnnual report
「Goodwill of ¥13.796 billion was recognized at the end of the fiscal year. If FFT's profitability declines in the future due to changes in the business environment or other factors, or if the synergies initially anticipated are not realized, the recognition of an impairment loss on goodwill could affect the Group's operating results and financial position.」
Specified the goodwill balance associated with the FFT acquisition at ¥13.796 billion and identified the impairment risk arising from lower profitability at the acquired company and unrealized synergies. - FY2019-Q3RestatedAnnual report
「With respect to acquisitions and strategic business and capital alliances with other companies undertaken by the Group in line with its growth strategy, the Group's operating results and financial position could be affected if changes in market or business conditions prevent it from achieving the results initially anticipated, cause deterioration in the businesses, management or assets of alliance partners or investees, or lead to the recognition of impairment losses on goodwill and other assets due to poor performance at an acquired company or the failure to realize the synergies initially anticipated.」
Continues to disclose the risks of unrealized results and synergies from M&A and business alliances, poor performance at acquired companies, and goodwill impairment. - FY2019-Q2First statedAnnual report
「With respect to acquisitions and strategic business and capital alliances with other companies undertaken by the Group in line with its growth strategy, the Group's operating results and financial position could be affected if changes in market or business conditions prevent it from achieving the results initially anticipated, cause deterioration in the businesses, management or assets of alliance partners or investees, or lead to the recognition of impairment losses on goodwill and other assets due to poor performance at an acquired company or the failure to realize the synergies initially anticipated.」
A risk newly disclosed in the second-quarter report. It indicates that unrealized expected results or synergies related to M&A and business alliances, poor performance at acquired companies, and impairment losses on goodwill and other assets could affect operating results and financial position.