Risk of underperformance by the acquired company and failure to realize synergies
First written in FY2016. 2 of 2 entries say "Materialised", first in FY2016. Latest entry: FY2026.
Yamaha moved to the "Worse" side of this theme in 2016, 8 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".
- FY2026MaterialisedAnnual report
「Yamaha Guitar Group, Inc. and its subsidiaries set ambitious growth targets after acquiring Cordoba Music Group, LLC in 2023 and expanding their product lineup, but performance has remained below the original plan, partly because of weak market conditions in Europe and the United States.」
The Company fully impaired ¥1.204 billion of Yamaha Guitar Group goodwill due to the failure to achieve the business plan following the acquisition of Cordoba. - FY2016MaterialisedAnnual report
「Because the performance of Line6, Inc. and its subsidiaries, which the Company made wholly owned subsidiaries in January 2014, and the benefits expected from using their product planning and development capabilities deviated from the original plan, the Company impaired its investment in the companies and recorded a ¥8.493 billion loss on the valuation of investments in affiliates as an extraordinary loss.」
The Company also recorded a ¥3.603 billion loss on the valuation of its investment in Revolabs, Inc. due to a deviation from the profit plan at the time of acquisition, and recorded one-time goodwill amortization of ¥6.759 billion for both companies on a consolidated basis.