M&A Contingent Liability and Investment Value Impairment Risks
First written in FY2020. 1 of 3 entries say "Restated". Latest entry: FY2023.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2023MitigatedAnnual report
「To address these risks, when considering an M&A transaction, our Group conducts thorough due diligence to prevent omissions, and discusses, verifies and determines plans for business development and earnings after integration. We have also established a cross-functional internal committee to realize synergies early and facilitate the integration of management.」
In response to the risks of contingent liabilities from M&A and impairment of investment value, the company described due diligence, verification of post-integration plans and integration oversight by a cross-functional committee. - FY2021-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company stated that there had been no material changes to the risks of contingent liabilities from M&A and impairment of investment value. - FY2020First statedAnnual report
「However, if contingent liabilities or other unrecognized liabilities not identified in the preliminary investigation exist, or if business development does not proceed as planned because of changes in market conditions or other factors, the investment value of the target company may be impaired, which could affect our Group's performance.」
The company newly identified as risks liabilities not identified during M&A due diligence and impairment of investment value resulting from poor business performance after an acquisition.