Fujifilm CFO reveals that acquired companies are managed for as many years as necessary until they deliver results: the secrets of portfolio management behind its "transformational management"

Since the 2000s, FUJIFILM Holdings Corporation has stepped up its M&A activity in response to the wave of digitization. It is said to have completed more than 40 M&A transactions since 2004. In 2011, it entered the CDMO business by acquiring Merck's contract manufacturing subsidiary. In 2019, it acquired a manufacturing subsidiary in Denmark from Biogen for approximately ¥99 billion, and in 2021 it acquired Hitachi's diagnostic imaging equipment business for approximately ¥179 billion.

While many companies consider post-merger integration (PMI) complete under a "100-day plan" covering roughly the first three months after an acquisition, Fujifilm manages it in six stages. Higuchi compares the process to an ICU, or intensive care unit, and says an acquired company should remain in the ICU for as many years as necessary, until results are achieved and it becomes healthy.

PMI involves head-office functions including intellectual property, human resources, accounting and corporate planning, with management joining as necessary. The company monitors data such as revenue, profit and inventory like "vital signs" and takes early action when a shortfall against the plan becomes apparent.

Goodwill currently stands at approximately ¥990 billion, but the company has not recorded a large goodwill impairment charge over the past 20 years.