Risks of Contingent and Unrecognized Liabilities After M&A
First written in FY2016. 1 of 2 entries say "Restated". Latest entry: FY2017.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2017RestatedAnnual report
「For target companies, both in Japan and overseas, the company seeks to minimize risk by conducting detailed due diligence on their financial condition, contractual relationships and other matters. However, contingent liabilities may arise or previously unrecognized liabilities may come to light after an M&A transaction.」
This reiterates that the risk of contingent and unrecognized liabilities remains after M&A, despite conducting due diligence. - FY2016First statedAnnual report
「For target companies, both in Japan and overseas, the company seeks to minimize risk by conducting detailed due diligence on their financial condition, contractual relationships and other matters. However, contingent liabilities may arise or previously unrecognized liabilities may come to light after an M&A transaction.」
The disclosure describes measures to mitigate risk through due diligence, while stating that contingent and unrecognized liabilities may come to light after M&A.