Contingent liabilities and goodwill impairment risks associated with M&A and business alliances
First written in FY2020-Q2. 3 of 4 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2024: 39 of 92 companies on the "Worse" side.
- FY2025RestatedAnnual report
「When conducting M&A or entering into business alliances, we carefully assess the target company and seek to avoid risks as far as possible by conducting detailed due diligence (Note) on its financial condition, contractual relationships and other matters. However, it is impossible to completely prevent unforeseen events, such as the discovery of contingent liabilities before the transaction or after the acquisition or alliance has been completed.」
The company continues to describe the risks of contingent liabilities, unforeseen events, failure to achieve business plans and goodwill impairment associated with M&A and business alliances, together with its policy of addressing them through due diligence. - FY2022RestatedAnnual report
「When conducting M&A or entering into business alliances, we carefully assess the target company and seek to avoid risks as far as possible by conducting detailed due diligence (Note) on its financial condition, contractual relationships and other matters. However, it is impossible to completely prevent unforeseen events, such as the discovery of contingent liabilities before the transaction or after the acquisition or alliance has been completed.」
The company continues to describe the risks of contingent liabilities, unforeseen events, failure to achieve business plans and goodwill impairment associated with M&A and business alliances, together with its policy of addressing them through due diligence. - FY2020-Q3RestatedAnnual report
「When conducting M&A or entering into business alliances, we carefully assess the target company and seek to avoid risks as far as possible by conducting detailed due diligence (Note) on its financial condition, contractual relationships and other matters. However, it is impossible to completely prevent unforeseen events, such as the discovery of contingent liabilities before the transaction or after the acquisition or alliance has been completed. In addition, when goodwill arises, we assume that sufficient earning power to exceed its amortization will be secured on a stable basis. If changes in the business environment after an acquisition impede execution of the original business plan, losses such as impairment losses on the goodwill concerned may arise and affect the operating results and financial position of our group.」
The company continues to describe the risks of contingent liabilities, unforeseen events, failure to achieve business plans and goodwill impairment associated with M&A and business alliances, together with its policy of addressing them through due diligence. - FY2020-Q2First statedAnnual report
「When conducting M&A or entering into business alliances, we carefully assess the target company and seek to avoid risks as far as possible by conducting detailed due diligence (Note) on its financial condition, contractual relationships and other matters. However, it is impossible to completely prevent unforeseen events, such as the discovery of contingent liabilities before the transaction or after the acquisition or alliance has been completed. In addition, when goodwill arises, we assume that sufficient earning power to exceed its amortization will be secured on a stable basis. If changes in the business environment after an acquisition impede execution of the original business plan, losses such as impairment losses on the goodwill concerned may arise and affect the operating results and financial position of our group.」
While positioning M&A and business alliances as effective strategies for expanding the business, the company has newly added risks including contingent liabilities, unforeseen events, failure to achieve post-acquisition business plans and goodwill impairment to its business and other risks.