Risk of Synergies Failing to Materialize Following M&A or a Capital and Business Alliance
First written in FY2025. 1 of 2 entries say "Mitigated", first in FY2026-H1. Latest entry: FY2026-H1.
The whole theme swung hardest in 2025: 9 of 30 companies on the "Worse" side.
5 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「The agreement includes a provision requiring the payment of contingent consideration, referred to below as "earn-out consideration," to the counterparty in the share acquisition depending on the degree of achievement of business results. Earn-out consideration is additional consideration paid to the counterparty in the share acquisition, with additional amounts paid according to the degree of achievement of the business results of サウザンド and アリスグリント. This will reduce the company's risk associated with the share acquisition while providing an incentive to the counterparty.」
To address the risks of failing to meet business targets and failing to realize synergies after M&A, the company established performance-linked earn-out consideration to reduce the acquirer's risk and provide an incentive to the counterparty. - FY2025First statedAnnual report
「However, if contingent events occur after an M&A transaction or other such transaction, if planned business development cannot be carried out due to changes in the business environment or other factors, or if the expected business synergies are not realized, the anticipated contribution to the group's business results may not be achieved, and impairment of goodwill or shares may also be required.」
While pursuing M&A as a priority strategy, the company newly disclosed the risks of failing to meet plans after implementation, failing to realize synergies, and impairment of goodwill and shares.