Risk of failure to realize synergies from M&A and business alliances
First written in FY2019. 1 of 4 entries say "Materialised", first in FY2021. Latest entry: FY2024.
The whole theme swung hardest in 2018: 13 of 78 companies on the "Worse" side.
99 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「Accordingly, the Group has clarified the items to be confirmed in M&A transactions. Transactions are carried out after careful prior examination of risks and returns, the target company's financial position and contractual relationships, among other matters, as well as due diligence, based on a determination that sufficient synergies can be achieved. The Group also seeks to prevent risks from materialising by conducting PMI appropriately and providing management support through management and the relevant business divisions.」
The Group continues to address the risks of unrealised synergies and underperformance associated with M&A and business alliances through due diligence, PMI and management support. - FY2023MitigatedAnnual report
「Transactions are carried out after careful prior examination of risks and returns, the target company's financial position and contractual relationships, among other matters, as well as due diligence, based on a determination that sufficient synergies can be achieved. The Group also seeks to prevent risks from materialising by conducting PMI appropriately and providing management support through management and the relevant business divisions.」
The Group specified its response to the risks of unrealised synergies, underperformance and impairment losses after M&A through due diligence, PMI and management support. - FY2021MaterialisedAnnual report
「Because the earnings initially anticipated in the business plan prepared at the time of acquisition of the goodwill of consolidated subsidiary Anest Iwata Italia s.r.l. are no longer expected to be generated, the full carrying amount has been recognised as an impairment loss and recorded under extraordinary losses.」
Because the earnings initially anticipated for the acquired company after the M&A are no longer expected to be generated, the full amount of goodwill relating to Anest Iwata Italia s.r.l. was recognised as an impairment loss. - FY2019First statedAnnual report
「The Group is actively promoting comprehensive business alliances with partners, including the acquisition of overseas companies, in order to accelerate the strengthening of its business base and secure sustainable growth. However, if synergies from the acquisition of technology and know-how, the sharing of sales networks and other initiatives are not realised as initially anticipated, the Group may be unable to maintain the expected profitability, and its financial condition and operating results may be affected by impairment losses and other factors.」
While actively pursuing M&A and comprehensive business alliances, the Group has, for the first time, separately identified the risks of unrealised synergies, declining profitability and impairment losses.