Failure of Acquired Businesses to Achieve Expected Profits and Business Withdrawals
First written in FY2016. 22 of 24 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2024: 39 of 91 companies on the "Worse" side.
- FY2026RestatedAnnual report
「Although we conduct sufficient due diligence when considering acquisitions and business transfers, unforeseen factors may cause the performance or financial condition of an acquired business to deteriorate rapidly, prevent it from generating the expected profits, or force us to exit the business. In such cases, the Group's performance may be affected by impairment losses on property, plant and equipment, goodwill and other assets.」
While continuing M&A, it continues to disclose the risks of deterioration in the acquired business's performance, failure to meet profit expectations, withdrawal and impairment losses. - FY2024MaterialisedAnnual report
「Because the losses arising from the operating activities of a consolidated subsidiary became negative and an early recovery could no longer be expected, the carrying amount was reduced to its recoverable amount, and the resulting decrease of ¥507 million was recorded as an impairment loss under extraordinary losses.」
Due to deteriorating earnings at consolidated subsidiaries, including the acquired business, and lower prospects for recovery, impairment losses of ¥507 million on goodwill and other assets were recorded, meaning that the risk of the acquired business failing to meet expected profits materialized. - FY2024-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The company states in its overall assessment that there have been no material changes concerning the risks of failing to achieve expected profits from acquisitions or withdrawing from businesses. - FY2024-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The company states in its overall assessment that there have been no material changes concerning the risks of failing to achieve expected profits from acquisitions or withdrawing from businesses. - FY2024-Q1RestatedAnnual report
「During the three-month period ended 30 June, there were no new risks that management recognizes as having the potential to materially affect the financial position, operating results or cash flows of the consolidated companies, and no material changes to the business risks described in the annual securities report for the previous fiscal year.」
The company states in its overall assessment that there have been no material changes concerning the risks of failing to achieve expected profits from acquisitions or withdrawing from businesses. - FY2023RestatedAnnual report
「The company conducts sufficient due diligence and other procedures when considering corporate acquisitions and business acquisitions, but there is a risk that the acquired company's operating results or financial position could deteriorate rapidly due to unforeseen factors, that expected profits may not be achieved, or that the company could be forced to withdraw from the business.」
While pursuing M&A, it continues to disclose the risks of deterioration in the acquired business's performance, failure to meet profit expectations, withdrawal and impairment losses. - FY2022RestatedAnnual report
「Although we conduct sufficient due diligence when considering acquisitions and business transfers, unforeseen factors may cause the performance or financial condition of an acquired business to deteriorate rapidly, prevent it from generating the expected profits, or force us to exit the business. In such cases, the Group's performance may be affected by impairment losses on property, plant and equipment, goodwill and other assets.」
While conducting due diligence, it reiterates the risks of deterioration in the acquired business's performance, failure to meet profit expectations, withdrawal and impairment losses on property, plant and equipment and goodwill. - FY2022-Q3RestatedAnnual report
「During the cumulative third quarter of the fiscal year, there were no major risk events that management recognizes could have a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters concerning the business situation, accounting situation and other matters described in this quarterly report, and there were no material changes to the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
It concludes that there have been no major risk events or significant changes regarding the risk that acquired businesses may fail to meet expected profits or may have to be exited. - FY2022-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
It concludes that there have been no major risk events or significant changes regarding the risk that acquired businesses may fail to meet expected profits or may have to be exited. - FY2021-Q3RestatedAnnual report
「During the cumulative third quarter of the fiscal year, there were no major risk events that management recognizes could have a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters concerning the business situation, accounting situation and other matters described in this quarterly report, and there were no material changes to the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
It concludes that there have been no major risk events or significant changes regarding the risk that acquired businesses may fail to meet expected profits or may have to be exited. - FY2021-Q2RestatedAnnual report
「During the cumulative second quarter of the fiscal year, there were no major risk events that management recognizes could have a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters concerning the business situation, accounting situation and other matters described in this quarterly report, and there were no material changes to the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
It concludes that there have been no major risk events or significant changes regarding the risk that acquired businesses may fail to meet expected profits or may have to be exited. - FY2021-Q1RestatedAnnual report
「During the three-month period ended 30 June, there were no new risks that management recognizes as having the potential to materially affect the financial position, operating results or cash flows of the consolidated companies, and no material changes to the business risks described in the annual securities report for the previous fiscal year.」
It concludes that there have been no major risk events or significant changes regarding the risk that acquired businesses may fail to meet expected profits or may have to be exited. - FY2020-Q3RestatedAnnual report
「During the nine-month period ended 31 December, there were no occurrences of matters that could have a material impact on investors' decisions among the matters concerning the business and accounting conditions described in the quarterly securities report, nor were there any material changes to the section on "Business and Other Risks" in the securities report for the previous fiscal year.」
The company states in its overall assessment that there have been no material changes concerning the risks of failing to achieve expected profits from acquisitions or withdrawing from businesses. - FY2020-Q2RestatedAnnual report
「During the six-month period ended in the second quarter, there were no material changes in the matters concerning the business and accounting conditions described in this quarterly securities report that could materially affect investors' decisions, nor in the business and other risks described in the securities report for the previous fiscal year.」
The company states in its overall assessment that there have been no material changes concerning the risks of failing to achieve expected profits from acquisitions or withdrawing from businesses. - FY2020-Q1RestatedAnnual report
「During the first quarter of the current consolidated fiscal year, there were no occurrences of matters that could have a material impact on investors' decisions among the matters concerning the business and accounting conditions described in the quarterly securities report, nor were there any material changes to the section on "Business and Other Risks" in the securities report for the previous fiscal year.」
The company states in its overall assessment that there have been no material changes concerning the risks of failing to achieve expected profits from acquisitions or withdrawing from businesses. - FY2019RestatedAnnual report
「The company conducts sufficient due diligence and other procedures when considering corporate acquisitions and business acquisitions, but there is a risk that the acquired company's operating results or financial position could deteriorate rapidly due to unforeseen factors, that expected profits may not be achieved, or that the company could be forced to withdraw from the business.」
While conducting due diligence, the company reiterates that risks remain, including deterioration in the acquired company's operating results, failure to achieve expected profits and withdrawal from the business. - FY2019-Q3RestatedAnnual report
「During the nine-month period ended 31 December, there were no occurrences of matters that could have a material impact on investors' decisions among the matters concerning the business and accounting conditions described in the quarterly securities report, nor were there any material changes to the section on "Business and Other Risks" in the securities report for the previous fiscal year.」
The company states in its overall assessment that there have been no material changes concerning the risks of failing to achieve expected profits from acquisitions or withdrawing from businesses. - FY2019-Q1RestatedAnnual report
「During the first quarter of the current consolidated fiscal year, there were no occurrences of matters that could have a material impact on investors' decisions among the matters concerning the business and accounting conditions described in the quarterly securities report, nor were there any material changes to the section on "Business and Other Risks" in the securities report for the previous fiscal year.」
The company states in its overall assessment that there have been no material changes concerning the risks of failing to achieve expected profits from acquisitions or withdrawing from businesses. - FY2018RestatedAnnual report
「The company conducts sufficient due diligence and other procedures when considering corporate acquisitions and business acquisitions, but there is a risk that the acquired company's operating results or financial position could deteriorate rapidly due to unforeseen factors, that expected profits may not be achieved, or that the company could be forced to withdraw from the business.」
While continuing M&A activities, the company reiterates that risks remain after due diligence, including deterioration in the acquired company's operating results, failure to achieve expected profits and withdrawal from the business. - FY2018-Q3RestatedAnnual report
「During the nine-month period ended 31 December, there were no occurrences of matters that could have a material impact on investors' decisions among the matters concerning the business and accounting conditions described in the quarterly securities report, nor were there any material changes to the section on "Business and Other Risks" in the securities report for the previous fiscal year.」
The company states in its overall assessment that there have been no material changes concerning the risks of failing to achieve expected profits from acquisitions or withdrawing from businesses. - FY2018-Q2RestatedAnnual report
「During the six-month period ended in the second quarter, there were no material changes in the matters concerning the business and accounting conditions described in this quarterly securities report that could materially affect investors' decisions, nor in the business and other risks described in the securities report for the previous fiscal year.」
The company states in its overall assessment that there have been no material changes concerning the risks of failing to achieve expected profits from acquisitions or withdrawing from businesses. - FY2018-Q1RestatedAnnual report
「During the first quarter of the current consolidated fiscal year, there were no occurrences of matters that could have a material impact on investors' decisions among the matters concerning the business and accounting conditions described in the quarterly securities report, nor were there any material changes to the section on "Business and Other Risks" in the securities report for the previous fiscal year.」
The company states in its overall assessment that there have been no material changes concerning the risks of failing to achieve expected profits from acquisitions or withdrawing from businesses. - FY2017-Q3RestatedAnnual report
「During the nine-month period ended 31 December, there were no occurrences of matters that could have a material impact on investors' decisions among the matters concerning the business and accounting conditions described in the quarterly securities report, nor were there any material changes to the section on "Business and Other Risks" in the securities report for the previous fiscal year.」
The company states in its overall assessment that there have been no material changes concerning the risks of failing to achieve expected profits from acquisitions or withdrawing from businesses. - FY2016First statedAnnual report
「The company conducts sufficient due diligence and other procedures when considering corporate acquisitions and business acquisitions, but there is a risk that the acquired company's operating results or financial position could deteriorate rapidly due to unforeseen factors, that expected profits may not be achieved, or that the company could be forced to withdraw from the business. In addition, because the earnings projected in the business plan at the time of the business acquisition of consolidated subsidiary ケィティーエル株式会社 could no longer be expected, the company recognized an impairment loss of ¥357 million on the goodwill as an extraordinary loss.」
In addition to the general risks associated with acquisitions and business acquisitions, the company describes a ¥357 million goodwill impairment loss arising from ケィティーエル株式会社's failure to achieve expected earnings.