Underperformance of Acquired Subsidiaries and Goodwill Impairment Risk
First written in FY2024-Q1. 7 of 10 entries say "Materialised", first in FY2025. Latest entry: FY2026.
Boutiques moved to the "Worse" side of this theme in 2025, 4 years after the typical company in this theme (2021).
The whole theme swung hardest in 2026: 17 of 32 companies on the "Worse" side.
25 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「For the human resources recruitment support business, comprising the recruitment event business and recruitment placement business, the Company determined that the total undiscounted future cash flows generated by the business would fall below its carrying amount and recognized the full amount of goodwill and fixed assets related to the business as an impairment loss under extraordinary losses.」
The risk of the human resources recruitment support business missing performance targets following the acquisition of 株式会社リアライブ continued, and an impairment loss of ¥376.892 million was actually incurred on goodwill, customer-related assets and other assets. - FY2025MaterialisedAnnual report
「Regarding the goodwill of 株式会社リアライブ, acquired in 2023, the Company conducted a detailed reassessment of its future recoverability in light of recent performance. Because the business is expected to fall short of the profit level assumed in the original business plan, the Company reduced the carrying amount to the recoverable amount and recognized the resulting decrease of ¥521.711 million as an impairment loss under extraordinary losses.」
The risk of the acquired subsidiary missing performance targets and goodwill impairment materialized, and the Company recorded an impairment loss of ¥521.711 million. The number of recruitment events held was used as a key assumption, and the Company disclosed the possibility of an additional impairment loss in the following fiscal year. - FY2024-Q3RestatedAnnual report
「株式会社リアライブ, which became a consolidated subsidiary in April 2023, is expected to make a significant contribution to the Group's performance in the future. However, if performance falls below initial expectations due to changes in the business environment or other factors, the Company may incur an impairment loss on goodwill and other charges, which could affect the Group's performance and financial position.」
The Company continues to describe the risk of 株式会社リアライブ missing performance targets and goodwill impairment. - FY2024-Q2RestatedAnnual report
「株式会社リアライブ, which became a consolidated subsidiary in April 2023, is expected to make a significant contribution to the Group's performance in the future. However, if performance falls below initial expectations due to changes in the business environment or other factors, the Company may incur an impairment loss on goodwill and other charges, which could affect the Group's performance and financial position.」
The Company continues to describe the risk of 株式会社リアライブ missing performance targets and goodwill impairment. - FY2024-Q1First statedAnnual report
「株式会社リアライブ, which became a consolidated subsidiary in April 2023, is expected to make a significant contribution to the Group's performance in the future. However, if performance falls below initial expectations due to changes in the business environment or other factors, the Company may incur an impairment loss on goodwill and other charges, which could affect the Group's performance and financial position.」
The Company has newly described a post-acquisition-specific risk that, if 株式会社リアライブ's performance falls below expectations, an impairment loss on goodwill and other charges may arise.