Risk of Expected Benefits Not Being Realized Following M&A and Capital Partnerships
First written in FY2020. 3 of 7 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「For goodwill arising from the business combinations of シスメックス パルテック, Oxford Gene Technology and シスメックス アストレゴ, all belonging to the Headquarters Operations segment, the company reassessed its business plans in light of past operating performance, progress against plans, changes in the business environment and changes in strategy. As the recoverable amounts fell below the carrying amounts, impairment losses of ¥1,541 million, ¥2,695 million and ¥7,032 million, respectively, were recognized.」
The risk that expected benefits after M&A would not fully materialize actually arose in the form of goodwill impairment losses recognized for シスメックス アストレゴ and other entities. - FY2024RestatedAnnual report
「The group aims to maximize the benefits of its investments by strengthening its mechanisms for considering and making decisions on investments and monitoring post-merger integration (PMI). Investment decisions are made after thorough due diligence, following deliberation at management meetings and other forums on the purpose, benefits and anticipated risks.」
The company has reiterated its risk management measures for M&A and capital alliances, including due diligence, deliberation at management meetings and post-investment PMI monitoring. - FY2022RestatedAnnual report
「However, the expected benefits and other effects may not materialize due to changes in the target company's operating environment or business, the emergence of information not identified during due diligence, or changes in the target company's operating environment or business after the acquisition.」
The company has reiterated the possibility that expected benefits will not materialize after M&A or capital alliances. - FY2021RestatedAnnual report
「However, the expected benefits and other effects may not materialize due to changes in the target company's operating environment or business, the emergence of information not identified during due diligence, or changes in the target company's operating environment or business after the acquisition.」
The company has reiterated the possibility that expected benefits will not materialize after M&A or capital alliances. - FY2020First statedAnnual report
「However, the expected benefits and other effects may not materialize due to changes in the target company's operating environment or business, the emergence of information not identified during due diligence, or changes in the target company's operating environment or business after the acquisition.」
When M&A or capital alliances are undertaken as a means of growth, the company has identified for the first time, as a separate item, the risk that expected benefits will not materialize due to changes in the target company's environment or information that was not identified.