Risks Associated with Acquisitions, Business Alliances and Capital Alliances
First written in FY2020. 4 of 6 entries say "Materialised", first in FY2023-Q3. Latest entry: FY2026-H1.
Suzumo Machinery moved to the "Worse" side of this theme in 2023, 1 year after the typical company in this theme (2022).
The whole theme swung hardest in 2018: 13 of 79 companies on the "Worse" side.
27 other companies' latest entry also says "Materialised".
- FY2026-H1MaterialisedAnnual report
「日本システムプロジェクト, acquired in October 2021 as part of this initiative, had continued to post weak results amid intensifying competition in the store systems industry and other factors. The company therefore carried out this merger to rationalize management through integrated operation of the businesses and strengthen its sales and development capabilities.」
The deterioration in the acquired company’s performance and intensifying competition continued, leading to a merger aimed at streamlining operations through integrated management and strengthening sales and development capabilities. - FY2025MaterialisedAnnual report
「The consolidated subsidiary 株式会社日本システムプロジェクト recognised an impairment loss on machinery and equipment for which the originally anticipated earnings were no longer expected, and recorded it as an extraordinary loss.」
Regarding the risk of failure to recover investments and impairment due to failure to meet business plans after an acquisition, the originally anticipated earnings from machinery and equipment at 株式会社日本システムプロジェクト were no longer expected, and an impairment loss of ¥2.460 million was recorded. - FY2024-Q2MaterialisedAnnual report
「As the performance of the consolidated subsidiary 株式会社日本システムプロジェクト deteriorated more than expected, an impairment loss of ¥28 million on goodwill related to the company was recorded as an extraordinary loss.」
Regarding risks associated with acquisitions and capital alliances, the deterioration in 株式会社日本システムプロジェクト’s performance materialised, and a ¥28 million impairment loss on goodwill was recorded. - FY2023-Q3MaterialisedAnnual report
「At equity-method affiliate Bluefin Trading LLC, the company recognized a ¥128 million equity-method investment loss as a non-operating expense, reflecting deteriorating results in the third quarter of the current consolidated fiscal year, an expected decline in sales to a major business partner and the anticipated impact on Bluefin's future results.」
Regarding risks associated with acquisitions and capital alliances, the deterioration in Bluefin Trading LLC’s performance and the anticipated decline in sales to major customers materialised, and an equity-method investment loss of ¥128 million was recorded. - FY2022Update to the relevant transactionsAnnual report
「On 1 October 2021, we acquired 100% of the shares of 株式会社日本システムプロジェクト, which develops and sells store-system-related products and services, primarily POS systems, self-ordering systems and serving robots for restaurants, with the aim of building new products and services that reduce labour requirements and improve efficiency in restaurants. On 1 April 2022, to strengthen our service structure, we acquired 100% of the shares of スズモメンテナンス株式会社, which had been an external service provider for our products in the Kanto-Koshinetsu region.」
The complete subsidiaries of 株式会社日本システムプロジェクト and スズモメンテナンス株式会社 have been added to the risks associated with M&A and business alliances. - FY2020First statedAnnual report
「On 6 November 2019, we acquired 35% of the shares of Bluefin Trading LLC. In carrying out acquisitions and business or capital alliances of this nature, we conduct a thorough risk assessment. However, if the business plan after an acquisition does not progress as initially planned, substantial additional funding may be required, or if declining profitability makes recovery of the investment unlikely and impairment accounting becomes necessary, we may record an impairment loss, which could affect our operating results and financial position.」
The risks associated with M&A and business and capital alliances, including the 35% investment in Bluefin, are described separately, covering failure to meet plans, additional funding, declining profitability, inability to recover the investment and possible impairment.