Risk of Contingent Liabilities Emerging and Synergies Falling Short After M&A
First written in FY2021. 1 of 2 entries say "Restated". Latest entry: FY2022.
The whole theme swung hardest in 2025: 9 of 30 companies on the "Worse" side.
36 other companies' latest entry also says "Restated".
- FY2022RestatedAnnual report
「The company seeks to minimize risks by conducting thorough due diligence on the target company's financial condition, contractual relationships, and other matters. However, if contingent liabilities arise or previously unrecognized liabilities are identified after an M&A transaction, or if the Group fails to achieve the synergies or business expansion initially expected, this could adversely affect the Group's performance and financial condition.」
The risks of contingent liabilities, previously unrecognized liabilities, and failure to achieve synergies after M&A, together with due diligence as a response, continued to be disclosed. - FY2021First statedAnnual report
「If contingent liabilities arise or previously unrecognized liabilities are identified after an M&A transaction, or if the Group fails to achieve the synergies or business expansion initially expected, this could adversely affect the Group's performance and financial condition.」
While M&A is a key strategy, contingent liabilities and previously unrecognized liabilities after an acquisition, as well as failure to achieve expected synergies, were disclosed as independent risks for the first time.