Goodwill Valuation and Impairment Risk Related to the Meishokai Acquisition
First written in FY2023. 3 of 6 entries say "Worsened", first in FY2024-Q1. Latest entry: FY2026-H1.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2026-H1WorsenedAnnual report
「During the interim consolidated accounting period, we acquired all shares of Include Co., Ltd. and made it a subsidiary, so it was included in the scope of consolidation. This resulted in goodwill of ¥294,239 thousand in the mental health solutions business.」
The Include acquisition generated provisional goodwill of ¥294,239 thousand, expanding exposure to post-M&A business-plan underperformance and impairment. - 2026-05-15WorsenedEarnings
「Following Include Co., Ltd.'s conversion into a subsidiary, goodwill increased by ¥270,503 thousand to ¥1,988,072 thousand.」
Goodwill increased as a result of Include becoming a subsidiary, expanding the amount subject to goodwill valuation and impairment risk associated with M&A. - FY2025ReframedAnnual report
「However, after an M&A transaction, including future transactions, if issues that our group could not identify in advance become apparent or the business does not progress as planned because of changes in market conditions or other factors, impairment of the target company’s share value or acquired assets may become necessary.」
The risk expanded from goodwill associated with the Meishokai acquisition to general impairment and business-plan underperformance risks covering Taskforce, Mirai Occupational Physician Office and future M&A. - 2026-03-06MitigatedGeneral Meetings of Shareholders
「Because profit from operating activities is positive and no significant deterioration has occurred in the business environment or other factors affecting the assumptions of the business plan prepared at the time of acquisition, with profit expected to remain positive going forward, the excess earning power anticipated at the time of acquisition has not been impaired and no indication of impairment has been identified for goodwill or customer-related assets.」
The company states that no indication of impairment had been identified as of the end of the fiscal year under review for goodwill and customer-related assets associated with Taskforce and other acquisitions. - FY2024-Q1WorsenedAnnual report
「However, if issues not recognized by the company become apparent after an M&A transaction or the business does not progress as planned for any reason, it may be necessary to recognize impairment of the target company’s share value or acquired assets, which could affect our group’s results and financial condition.」
The Taskforce acquisition generated provisional goodwill of ¥2,082,635 thousand, expanding exposure to underperformance of post-M&A business plans and impairment of goodwill and acquired assets beyond the existing Meishokai acquisition. - FY2023First statedAnnual report
「If changes in the business environment or other factors require modification of the business plan used as the basis for estimating future cash flows, this could affect our group’s results.」
The acquisition of Meishokai Occupational Health Consultant Office resulted in goodwill of ¥177,567 thousand at December 2023. No impairment indicators had been identified, but changes in the business plan or future cash flows could affect results.