GVHR » Topics » Our acquisition strategy subjects us to numerous risks.

These excerpts taken from the GVHR 10-K filed Mar 16, 2009.

Our acquisition strategy subjects us to numerous risks.

 

Subject to the Merger Agreement, one important component of our growth strategy is to pursue selective acquisitions. This strategy entails numerous risks, including the following:

 

Integration & Operational Risks.  We face risks associated with integrating new organizations, including their management, personnel and clients, into our established business. An inability to successfully integrate acquired businesses into our operations could cause attrition of acquired personnel and clients. An acquisition may not provide the benefits originally anticipated by management while we continue to incur operating expenses to provide the services provided formerly by the acquired company.

 

Financial Risks.  We may finance an acquisition with cash, by issuing equity securities (which could be dilutive to existing shareholders) or by incurring debt (which would increase our leverage and interest expense and could impose additional restrictive covenants). We cannot assure you that we will be able to access the capital markets for these transactions, and, even if we were able to do so, we cannot assure you we would be able to obtain commercially reasonable terms for any such financing.

 

Legal Risks.  An acquired company may have liabilities that are difficult to assess, for which there are inadequate reserves and that may be significant. For example, employee benefit plans of an acquired company could result in liability due to the plan’s failure to comply with applicable laws and regulations. Further, there may be acquisition-related disputes, including disputes over earn-outs, indemnities and escrows.

 

Completion Risks.  Even if we pursue possible acquisition candidates, we cannot assure you that we will be able to close on them at attractive prices or at all. As a result, we may expend considerable resources (such as management time and money) on pursuing acquisitions without successfully acquiring any new businesses.

 

Many of these risks are beyond our ability to control. As a result, there can be no assurances that we will be able to achieve this component of our growth strategy. These risks could also have a material adverse impact on our results of operations. In addition, these risks could be compounded if we complete several acquisitions within a relatively short period of time.

 

Our acquisition
strategy subjects us to numerous risks.



 



Subject
to the Merger Agreement, one important component of our growth strategy is to
pursue selective acquisitions. This strategy entails numerous risks, including
the following:



 



Integration & Operational Risks.  We
face risks associated with integrating new organizations, including their
management, personnel and clients, into our established business. An inability
to successfully integrate acquired businesses into our operations could cause
attrition of acquired personnel and clients. An acquisition may not provide the
benefits originally anticipated by management while we continue to incur
operating expenses to provide the services provided formerly by the acquired
company.



 



Financial Risks.  We may finance
an acquisition with cash, by issuing equity securities (which could be dilutive
to existing shareholders) or by incurring debt (which would increase our
leverage and interest expense and could impose additional restrictive
covenants). We cannot assure you that we will be able to access the capital
markets for these transactions, and, even if we were able to do so, we cannot
assure you we would be able to obtain commercially reasonable terms for any
such financing.



 



Legal Risks.  An acquired
company may have liabilities that are difficult to assess, for which there are
inadequate reserves and that may be significant. For example, employee benefit
plans of an acquired company could result in liability due to the plan’s
failure to comply with applicable laws and regulations. Further, there may be
acquisition-related disputes, including disputes over earn-outs, indemnities
and escrows.



 



Completion Risks.  Even if we
pursue possible acquisition candidates, we cannot assure you that we will be
able to close on them at attractive prices or at all. As a result, we may
expend considerable resources (such as management time and money) on pursuing
acquisitions without successfully acquiring any new businesses.



 



Many
of these risks are beyond our ability to control. As a result, there can be no
assurances that we will be able to achieve this component of our growth
strategy. These risks could also have a material adverse impact on our results
of operations. In addition, these risks could be compounded if we complete
several acquisitions within a relatively short period of time.



 



Our acquisition
strategy subjects us to numerous risks.



 



Subject
to the Merger Agreement, one important component of our growth strategy is to
pursue selective acquisitions. This strategy entails numerous risks, including
the following:



 



Integration & Operational Risks.  We
face risks associated with integrating new organizations, including their
management, personnel and clients, into our established business. An inability
to successfully integrate acquired businesses into our operations could cause
attrition of acquired personnel and clients. An acquisition may not provide the
benefits originally anticipated by management while we continue to incur
operating expenses to provide the services provided formerly by the acquired
company.



 



Financial Risks.  We may finance
an acquisition with cash, by issuing equity securities (which could be dilutive
to existing shareholders) or by incurring debt (which would increase our
leverage and interest expense and could impose additional restrictive
covenants). We cannot assure you that we will be able to access the capital
markets for these transactions, and, even if we were able to do so, we cannot
assure you we would be able to obtain commercially reasonable terms for any
such financing.



 



Legal Risks.  An acquired
company may have liabilities that are difficult to assess, for which there are
inadequate reserves and that may be significant. For example, employee benefit
plans of an acquired company could result in liability due to the plan’s
failure to comply with applicable laws and regulations. Further, there may be
acquisition-related disputes, including disputes over earn-outs, indemnities
and escrows.



 



Completion Risks.  Even if we
pursue possible acquisition candidates, we cannot assure you that we will be
able to close on them at attractive prices or at all. As a result, we may
expend considerable resources (such as management time and money) on pursuing
acquisitions without successfully acquiring any new businesses.



 



Many
of these risks are beyond our ability to control. As a result, there can be no
assurances that we will be able to achieve this component of our growth
strategy. These risks could also have a material adverse impact on our results
of operations. In addition, these risks could be compounded if we complete
several acquisitions within a relatively short period of time.



 



These excerpts taken from the GVHR 10-K filed Mar 17, 2008.

Our acquisition strategy subjects us to numerous risks.

        One important component of our growth strategy is to pursue selective acquisitions. This strategy entails numerous risks, including the following:

        Integration & Operational Risks.    We face risks associated with integrating new organizations, including their management, personnel and clients, into our established business. An inability to successfully integrate acquired businesses into our operations could cause attrition of acquired personnel and clients. An acquisition may not provide the benefits originally anticipated by management while we continue to incur operating expenses to provide the services provided formerly by the acquired company.

        Financial Risks.    We may finance an acquisition with cash, by issuing equity securities (which could be dilutive to existing shareholders) or by incurring debt (which would increase our leverage and interest expense and could impose additional restrictive covenants). We cannot assure you that we will be able to access the capital markets for these transactions, and, even if we were able to do so, we cannot assure you we would be able to obtain commercially reasonable terms for any such financing.

        Legal Risks.    An acquired company may have liabilities that are difficult to assess, for which there are inadequate reserves and that may be significant. For example, employee benefit plans of an acquired company could result in liability due to the plan's failure to comply with applicable laws and regulations. Further, there may be acquisition-related disputes, including disputes over earn-outs, indemnities and escrows.

        Completion Risks.    Even if we pursue possible acquisition candidates, we cannot assure you that we will be able to close on them at attractive prices or at all. As a result, we may expend considerable resources (such as management time and money) on pursuing acquisitions without successfully acquiring any new businesses.

        Many of these risks are beyond our ability to control. As a result, we cannot assure you that we will be able to achieve this component of our growth strategy. These risks could also have a material adverse impact on our results of operations. In addition, these risks could be compounded if we complete several acquisitions within a relatively short period of time.

Our acquisition strategy subjects us to numerous risks.





        One important component of our growth strategy is to pursue selective acquisitions. This strategy entails numerous risks, including the following:



        Integration & Operational Risks.    We face risks associated with integrating new organizations, including their
management, personnel and clients, into our established business. An inability to successfully integrate acquired businesses into our operations could cause attrition of acquired personnel and
clients. An acquisition may not provide the benefits originally anticipated by management while we continue to incur operating expenses to provide the services provided formerly by the acquired
company.



        Financial Risks.    We may finance an acquisition with cash, by issuing equity securities (which could be dilutive to existing
shareholders) or by incurring debt (which would increase our leverage and interest expense and could impose additional restrictive covenants). We cannot assure you that we will be able
to access the capital markets for these transactions, and, even if we were able to do so, we cannot assure you we would be able to obtain commercially reasonable terms for any such financing.



        Legal Risks.    An acquired company may have liabilities that are difficult to assess, for which there are inadequate reserves
and that may be significant. For example, employee benefit plans of an acquired company could result in liability due to the plan's failure to comply with applicable laws and regulations. Further,
there may be acquisition-related disputes, including disputes over earn-outs, indemnities and escrows.



        Completion Risks.    Even if we pursue possible acquisition candidates, we cannot assure you that we will be able to close on
them at attractive prices or at all. As a result, we may expend considerable resources (such as management time and money) on pursuing acquisitions without successfully acquiring any new businesses.




        Many
of these risks are beyond our ability to control. As a result, we cannot assure you that we will be able to achieve this component of our growth strategy. These risks could also
have a material adverse impact on our results of operations. In addition, these risks could be compounded if we complete several acquisitions within a relatively short period of time.





This excerpt taken from the GVHR 10-K filed Mar 16, 2007.
Our acquisition strategy subjects us to numerous risks.
 
One important component of our growth strategy is to pursue selective acquisitions. For example, on February 19, 2007, we announced the acquisition of HRAmerica, Inc., an HR outsourcing firm. This strategy entails numerous risks, including the following:
 
Integration & Operational Risks.  We face risks associated with integrating new organizations, including their management, personnel and clients, into our established business. An inability to successfully integrate acquired businesses into our operations could cause attrition of acquired personnel and clients. An acquisition may not provide the benefits originally anticipated by management while we continue to incur operating expenses to provide the services provided formerly by the acquired company.
 
Financial Risks.  We may finance an acquisition with cash, by issuing equity securities (which could be dilutive to existing shareholders) or by incurring debt (which would increase our leverage and interest expense). We cannot assure you that we will be able to access the capital markets for these transactions, and, even if we were able to do so, we cannot assure you we would be able to obtain commercially reasonable terms for any such financing.
 
Legal Risks.  An acquired company may have liabilities that are difficult to assess, for which there are inadequate reserves and that may be significant. For example, employee benefit plans of an acquired company could result in liability due to the plan’s failure to comply with applicable laws and regulations.
 
Completion Risks.  Even if we pursue possible acquisition candidates, we cannot assure you that we will be able to close on them at attractive prices or at all. As a result, we may expend considerable resources (such as management time and money) on pursuing acquisitions without successfully acquiring any new businesses.
 
Many of these risks are beyond our ability to control. As a result, we cannot assure you that we will be able to achieve this component of our growth strategy. These risks could also have a material adverse impact on our results of operations. In addition, these risks could be compounded if we complete several acquisitions within a relatively short period of time.
 
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