This excerpt taken from the MOCO 10-K filed Mar 31, 2006.
Our growth strategy to supplement our internal growth with the acquisition of businesses and technologies that complement or augment our existing products involves other risks, including integration risks, which could harm our business.
As part of our growth strategy, we have in the past acquired, and intend to acquire in the future, other businesses that have technologies and product lines that complement or augment our existing products. We intend to continue to pursue other acquisitions in the future. The benefits of any of these or future acquisitions may take more time than expected to develop, and we cannot guarantee that any of our recent or future acquisitions will in fact produce any intended benefits. In addition, acquisitions and the integration of those acquisitions involve a number of risks, including:
· diversion of our managements attention from our core businesses;
· difficulties in assimilating the operations and products of an acquired business or in realizing projected efficiencies, cost savings and revenue synergies;
· potential loss of key employees or clients of the acquired businesses or adverse effects on existing business relationships with suppliers and clients;
· reallocation of amounts of capital from operating initiatives and/or the incurrence of indebtedness to pay the acquisition purchase prices, which could in turn restrict our ability to access additional capital when needed or to pursue other important elements of our business strategy;
· inaccurate assessment of undisclosed, contingent or other liabilities or problems; and
· unanticipated costs associated with the acquisition, including additional expenditures related to Sarbanes-Oxley Act of 2002 compliance.
Our ability to grow through acquisitions will depend, in part, on the availability of suitable acquisition candidates at an acceptable cost, our ability to compete effectively for these acquisition candidates and the availability of capital to complete such acquisitions. These risks could be heightened if we complete several acquisitions within a relatively short period of time.