Risk of Failure to Meet Business Plans and Goodwill Impairment Following Business Alliances and M&A
First written in FY2022. 1 of 2 entries say "Mitigated", first in FY2024. Latest entry: FY2024.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2024MitigatedAnnual report
「When entering into business alliances, M&A transactions and other arrangements, the Group seeks to mitigate risks by conducting sufficient preliminary reviews of target companies, with the involvement of external experts, as well as due diligence on their financial condition, contractual terms and other matters.」
Preliminary reviews involving external experts and due diligence on financial and contractual terms were identified as measures to address the risk of failing to meet plans after M&A or alliances and the risk of goodwill impairment. - FY2022First statedAnnual report
「However, if progress falls short of business plans due to major changes in the business environment after an alliance or acquisition, or the emergence of risks at a target company that could not initially have been anticipated, the Group's operating results and other matters may be affected by goodwill impairment and other factors.」
While business alliances and M&A are recognised as means of expanding earnings and strengthening competitiveness, changes in the environment after acquisitions, the emergence of risks at target companies and goodwill impairment were described as new risks. Due diligence was also identified as a mitigation measure.