Risk of unrealised post-M&A synergies and goodwill impairment
First written in FY2020. 1 of 3 entries say "Materialised", first in FY2023. Latest entry: FY2026.
The whole theme swung hardest in 2024: 38 of 92 companies on the "Worse" side.
- FY2026RestatedAnnual report
「However, if the expected synergies or business expansion benefits are not achieved due to changes in the business environment after an acquisition or other factors, the group's operating results may be affected by the recognition of goodwill impairment losses and other factors.」
The company continues to disclose the risk of goodwill impairment resulting from unrealised post-M&A synergies or failure to achieve business expansion, citing due diligence and budget-versus-actual management as countermeasures. - FY2023MaterialisedAnnual report
「As the excess earning power anticipated in the business plan at the time of acquiring the shares of the consolidated subsidiary ㈱太陽プロパン is no longer expected to materialise, the company recorded the entire unamortised balance of the related goodwill as an impairment loss.」
As the excess earning power anticipated after the M&A was no longer expected to materialise, the company fully impaired ¥107.850 million of goodwill related to 太陽プロパン. - FY2020First statedAnnual report
「However, if the expected synergies or business expansion benefits are not achieved due to changes in the business environment after an acquisition or other factors, the group's operating results may be affected by the recognition of goodwill impairment losses and other factors.」
While positioning M&A as an important management strategy, the company explicitly identifies for the first time the risk of goodwill impairment if post-acquisition synergies fail to materialise or business expansion targets are not achieved.