Risk of Undisclosed Liabilities and Failure to Achieve Business Plans After Acquisitions
First written in FY2023. 1 of 2 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2018: 13 of 78 companies on the "Worse" side.
100 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「Our group seeks to mitigate the above risks by conducting thorough due diligence on acquisition targets and carefully examining the business environment and the feasibility of post-acquisition business plans.」
The company continues to describe the risks of unrecognized and contingent liabilities after M&A and failure to achieve business plans, as well as the response through due diligence. - FY2023First statedAnnual report
「Before making an acquisition, we conduct an investigation of the target company's financial condition, contractual relationships and other matters. However, the nature of a transaction and time constraints may prevent a sufficiently thorough investigation, and unrecognized liabilities may be identified or contingent liabilities may arise after the acquisition. In addition, if the business plan initially envisaged fails to progress as planned due to changes in the business environment or other factors, this may affect the group's operating results and financial position.」
As new risks associated with the policy of actively using M&A, the company explicitly identifies unrecognized and contingent liabilities after acquisitions and the risk of failing to achieve post-acquisition plans.