Failure to Achieve Expected M&A Benefits and Discovery of Unrecognized Liabilities
First written in FY2017. 2 of 6 entries say "Reframed", first in FY2020. Latest entry: 2026-06-26.
Zensho Holdings moved to the "Worse" side of this theme in 2018.
4 other companies' latest entry also says "Restated".
- 2026-06-26RestatedGovernance
「Investment Advisory Committee」
投資諮問委員会がガバナンス体制の構成機関として図示されている。 - FY2026RestatedAnnual report
「In conducting M&A transactions, our specialist department and external experts carry out detailed due diligence and investigate and analyze the target company from multiple perspectives in an effort to avoid risks as far as possible. However, after an M&A transaction, contingent liabilities, previously unrecognized liabilities or compliance issues may be discovered, or changes in market and competitive conditions may prevent us from generating the profits or benefits initially expected.」
The risks of contingent liabilities, previously unrecognized liabilities, compliance issues and failure to achieve expected benefits after M&A transactions, together with due diligence by specialist departments and external experts, continue to be disclosed. - FY2023ReframedAnnual report
「After an M&A transaction, contingent liabilities, previously unrecognized liabilities or compliance issues may be discovered, or changes in market and competitive conditions may prevent us from generating the profits or benefits initially expected.」
The company explicitly identifies post-acquisition compliance issues and failure to achieve expected benefits due to changes in market and competitive conditions as components of M&A risk. - FY2020ReframedAnnual report
「In connection with M&A transactions, our specialist department and external experts conduct a careful, multifaceted investigation of the target company through due diligence. However, we may fail to generate the profits or benefits initially expected.」
Responsibility for addressing M&A risks is assigned to both an internal specialist department and external experts, and evaluation and recommendations by the Investment Advisory Committee are also described. - FY2018MaterialisedAnnual report
「Because the earnings initially projected in the business plan prepared at the time of acquisition were no longer expected to be generated, we reduced the carrying amounts of goodwill related to ㈱華屋与兵衛 and ㈱エイ・ダイニング to their recoverable amounts and recorded an impairment loss of ¥1,019 million.」
The risk that earnings initially expected after an M&A transaction may no longer be generated has materialized in the form of goodwill impairment losses related to 華屋与兵衛 and エイ・ダイニング. - FY2017First statedAnnual report
「In connection with M&A transactions, our specialist department conducts a careful, multifaceted investigation of the target company through due diligence. However, we may fail to generate the profits or benefits initially expected. In addition, contingent liabilities or previously unrecognized liabilities may be discovered after the M&A transaction.」
The company identifies failure to achieve expected M&A benefits and the discovery of contingent or unrecognized liabilities as risks that remain even after due diligence has been conducted.