Business Expansion Risks Associated with Technology Alliances, Business Alliances and Acquisitions
First written in FY2016. 3 of 7 entries say "Restated". Latest entry: FY2025.
Asahi Intecc moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2023: 35 of 97 companies on the "Worse" side.
54 other companies' latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「However, despite preliminary investigations and consideration, if the business environment changes rapidly after an acquisition, an unforeseen event occurs, the acquired business fails to develop as planned and the invested funds cannot be recovered, additional costs arise, or goodwill or other intangible assets must be impaired, among other circumstances, the Group’s business development and operating results may be affected.」
Regarding the previously identified risks of poor business development after acquisitions, failure to recover invested funds and impairment of intangible assets, impairment losses of ¥9.244 billion relating to 4 companies actually occurred. - FY2022WorsenedAnnual report
「However, despite preliminary investigations and consideration, if the business environment changes rapidly after an acquisition, an unforeseen event occurs, the acquired business fails to develop as planned and the invested funds cannot be recovered, additional costs arise, or goodwill must be impaired, among other circumstances, the Group’s business development and operating results may be affected.」
The Group explicitly identifies risks including poor business development after acquisitions, failure to recover invested funds, additional costs and impairment of goodwill while making multiple acquisitions. - FY2021RestatedAnnual report
「When making an acquisition, the Group conducts due diligence on market trends, the target company’s financial position and contractual terms, its technological advantages and market competitiveness, the Group’s business portfolio, and the risks associated with the acquisition, seeking to mitigate risks in advance.」
Even while making multiple acquisitions, the Group continues to pursue a policy of mitigating acquisition risks through preliminary investigations and due diligence. - FY2019RestatedAnnual report
「The Group may enter into alliances or make acquisitions involving other companies, including technology alliances, business alliances and capital alliances, mainly in research and development and manufacturing.」
While using alliances and acquisitions as means of growth, the Group continues to disclose the risk that unforeseen circumstances, even after due diligence, may affect business development and operating results. - FY2018WorsenedAnnual report
「At a meeting of the Board of Directors held on 6 July 2018, the Company resolved that its consolidated subsidiary ASAHI INTECC USA, INC. would acquire shares in RetroVascular,Inc. and make it a subsidiary, and thereby a second-tier subsidiary of the Company. On the same day, the transfer of 99.4% of the shares was completed as resolved.」
Regarding the risks associated with technology alliances and acquisitions, the Group newly disclosed the fact that the acquisition of 99.4% of RetroVascular, Inc. had been completed. - FY2017RestatedAnnual report
「The Group may enter into alliances or make acquisitions involving other companies, including technology alliances, business alliances and capital alliances, mainly in research and development and manufacturing.」
The Group reiterates the business development risks associated with technology alliances, business alliances, capital alliances and acquisitions, as well as its policy of mitigating these risks through due diligence. - FY2016First statedAnnual report
「The Group may enter into alliances or make acquisitions involving other companies, including technology alliances, business alliances and capital alliances, mainly in research and development and manufacturing.」
While seeking to mitigate risks through due diligence, the Group states that sudden changes in the business environment and other factors may affect business development and operating results.