Risk of Post-Acquisition and Capital Alliance Integration Failure and Failure to Achieve Expected Results
First written in FY2018. 2 of 3 entries say "Materialised", first in FY2019. Latest entry: FY2026.
The whole theme swung hardest in 2024: 39 of 92 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「In light of the outlook for the business, the company reduced the carrying amount to the recoverable amount and recognized the decrease as an impairment loss included in extraordinary losses.」
Regarding the business acquired or involved in a capital alliance, the company determined, based on CHEER証券's business outlook, that future cash flows could not be expected and recognized an impairment loss of ¥2,001 million on software and other assets. - FY2019MaterialisedAnnual report
「In the fiscal year, results were difficult due to the impact on financial markets of sources of uncertainty such as U.S.-China trade friction and Brexit, as well as upfront investments including the relocation of the head office and investments in FinTech companies, and delays in the acquired subsidiaries becoming profitable.」
The risk previously described as the possibility of delays in monetizing acquired subsidiaries materialized as a factor contributing to difficult results in the fiscal year, with profitability delayed. - FY2018First statedAnnual report
「Successful acquisitions and capital alliances require efficient integration of the businesses involved. The acquired or allied businesses may fail to generate earnings as expected. If the Group fails to achieve the results initially expected, or if a serious unforeseen problem is discovered after an acquisition or capital alliance, this may adversely affect the Group's financial condition and operating results.」
As acquisitions and capital alliances expanded, including those involving 髙木証券, ピナクル, and メビウス, the company explicitly identified integration, failure to meet earnings plans, and discovery of serious post-acquisition problems as separate risks for the first time.