Unrecognized Liabilities and Failure to Achieve Expected Benefits following M&A and Business Alliances
First written in FY2018. 2 of 4 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2026AdvancedAnnual report
「The Group seeks to minimize risks by specifying, among other matters, liability for defects in agreements and other contracts. After M&A transactions, it also assigns Group personnel to facilitate smooth Group operations.」
In addition to due diligence by external professionals, the company has added specifying liability for defects in contracts and assigning personnel after acquisitions as countermeasures. - FY2025RestatedAnnual report
「The company endeavors to avoid risks associated with target companies, including by engaging external lawyers, accountants and other professionals to conduct due diligence. However, if unrecognized liabilities are identified after an M&A transaction, or if the initially expected benefits are not achieved, this may affect the performance and financial position of the Group.」
The company continues to address the risks of unrecognized liabilities and failure to achieve expected benefits after M&A transactions through measures including due diligence by external professionals. - FY2024RestatedAnnual report
「The company endeavors to avoid risks associated with target companies as far as possible. However, if unrecognized liabilities are identified after an M&A transaction, or if the initially expected benefits are not achieved, this may affect the performance and financial position of the Group.」
The company continues to address the risks of unrecognized liabilities and failure to achieve expected benefits after M&A transactions, while maintaining its policy of avoiding risks associated with target companies as far as possible. - FY2018First statedAnnual report
「If unrecognized liabilities are identified after an M&A transaction or if the benefits initially expected are not achieved, our group’s results and financial position may be affected.」
While M&A and business alliances are used to strengthen the business, unrecognized liabilities after an acquisition and failure to achieve expected benefits are disclosed as specific risks.