This excerpt taken from the EPEX 10-Q filed Aug 11, 2008.
Chaparrals integration of our business following the proposed merger will present significant challenges that may reduce the anticipated potential benefits of the proposed merger.
We and Chaparral will face significant challenges in consolidating functions and integrating our organizations, procedures and operations in a timely and efficient manner, as well as retaining key personnel. Our integration with Chaparral will be complex and time-consuming. The principal challenges will include the following:
· integrating our and Chaparrals existing businesses;
· addressing differences in business cultures, preserving employee morale and retaining key employees, while meeting the operational and financial goals of the combined company;
· preserving supplier, customer, business partner and other important relationships and resolving potential conflicts that may arise as a result of the proposed merger; and
· consolidating other corporate and administrative functions.
After the completion of the proposed merger, the management of Chaparral will need to dedicate substantial efforts to integrating the businesses. These efforts could divert managements focus and resources from other day-to-day tasks, corporate initiatives or strategic opportunities during the integration process.