Risk of adverse impact on performance from post-M&A integration delays, failure to achieve expected profits, goodwill impairment and other factors
First written in FY2023. 3 of 6 entries say "Materialised", first in FY2024-Q1. Latest entry: 2026-08-14.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- 2026-08-14MitigatedEarnings presentation
「Both meyco and ウェブココル continue to contribute to the group, generating amounts exceeding their respective goodwill balances.」
The company states that both subsidiaries continue to contribute profits exceeding their respective goodwill balances. - FY2025MitigatedAnnual report
「In addition to meyco and ウェブココル recording operating profit broadly in line with their plans, stable performance is expected from the following fiscal year onward. Accordingly, no indication of impairment of goodwill has been identified.」
For both companies after the M&A transactions, the company describes operating profit in line with plans and expectations for stable performance, and explains that no indication of goodwill impairment had been identified during the current consolidated fiscal year. - FY2024MaterialisedAnnual report
「The impairment loss recognized as a result of reviewing the business plan for the investment in ウェブココル株式会社, an equity-method affiliate, in light of changes in the business environment, is included in the equity-method investment loss.」
Following changes in the business environment and a review of the business plan after the M&A and investment, the company recognized an equity-method investment loss of ¥79.550 million, including an impairment loss related to its investment in ウェブココル. - FY2024-Q2MaterialisedAnnual report
「Growth in performance slowed as a result of costs incurred to acquire shares for the growth of the Group, upfront investment in the internal management framework, and measures to address bad-debt risk,」
The company states that acquisition costs related to M&A and upfront investment in internal control systems were actually incurred, slowing performance growth. - FY2024-Q1MaterialisedAnnual report
「As the company is actively pursuing M&A to support future Group growth, acquisition costs and upfront investment in internal control systems have been incurred, slowing the growth of performance, but」
The company states that acquisition costs related to M&A and upfront investment in internal control systems were actually incurred, slowing performance growth. It also recognized an equity-method investment loss of ¥328,000 and goodwill amortization of ¥7.661 million. It does not state that all events identified as risks, such as integration delays and failure to achieve expected profits, occurred. - FY2023First statedAnnual report
「To strengthen its business base and promote new business development, the company completed 2 M&A transactions in 1 year, including making companies subsidiaries and equity-method affiliates. If integration work does not progress as planned after an M&A transaction, the acquired business fails to generate a substantial portion of the expected profits, the Group's performance is temporarily affected by goodwill amortization or other factors, or contingent liabilities or unrecognized liabilities arise, the Group's performance may be affected.」
Against the background of 2 M&A transactions completed in 1 year, the company disclosed for the first time integration delays, failure to achieve expected profits, goodwill amortization, and the impact on performance from contingent and unrecognized liabilities as separate risks.