Risk of Being Unable to Recover Investments Due to Insufficient Due Diligence or Failure to Meet Plans in Acquisitions and Business Transfers
First written in FY2020. 3 of 5 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2020: 28 of 84 companies on the "Worse" side.
88 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「If there are deficiencies or oversights in the preliminary investigation and review, the acquired business fails to develop as planned, the invested funds cannot be recovered, or additional costs are incurred」
The risks of inadequate M&A due diligence, failure to meet post-acquisition plans, inability to recover investments and the incurrence of additional costs continue to be disclosed. - 2026-04-03RestatedGeneral Meetings of Shareholders
「Because the key assumptions involve estimation uncertainty, if a material change occurs and it is determined that excess earning power has been impaired, an impairment loss may be recognized in the following consolidated fiscal year.」
The company continues to disclose the valuation of goodwill at Kakedas, Campus Support and Efficient based on business plans and future cash flows, as well as the possibility of recognizing impairment losses. - FY2024WorsenedAnnual report
「For the goodwill of Kakedas Co., Ltd. in the current consolidated fiscal year, we determined that there were indications of impairment because a divergence arose between the business plan at the time of acquisition and subsequent actual results, and are considering whether it is necessary to recognise an impairment loss.」
For Kakedas after the M&A, indications of goodwill impairment were identified due to the divergence between the plan at the time of acquisition and actual results. However, because the revised undiscounted future cash flows exceeded the carrying amount, no impairment loss was recognised for the fiscal year. - FY2022RestatedAnnual report
「To expand its business, the Group will pursue M&A, including the acquisition of companies and businesses that are expected to grow and can generate synergies with the Company's operations.」
The policy of pursuing M&A and the risks of inadequate due diligence, failure to meet plans and inability to recover investments continue to be disclosed. - FY2020First statedAnnual report
「If there are deficiencies or oversights in the preliminary investigation and review, the acquired business fails to develop as planned, the invested funds cannot be recovered, or additional costs are incurred, this may affect the Group's operating results and financial position.」
This describes inadequate due diligence in M&A, failure to meet post-acquisition plans, inability to recover investments and the incurrence of additional costs.