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VLG » Topics » We may not be able to identify, consummate and integrate suitable acquisitions or achieve the benefits we expect from acquisitions.This excerpt taken from the VLG 10-K filed Sep 28, 2006. We may
not be able to identify, consummate and integrate suitable
acquisitions or achieve the benefits we expect from
acquisitions.
One of our principal business strategies is to pursue growth
through the acquisition of other independent distributors.
Because we focus our acquisition efforts on market areas in
which we have an existing presence and on bordering market
areas, we may not always be able to find suitable acquisition
candidates. Even if we are able to identify an attractive
acquisition candidate, we may incorrectly judge its value, may
not locate and assess all its liabilities and may not be able to
negotiate the terms of the acquisition successfully. In
addition, we may have
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difficulty integrating the products, services or technologies of
the acquired business into our operations, retaining key
employees and retaining customers of the acquired company.
Although we believe that we have more carefully controlled
customer attrition in our recent acquisitions, loss of customers
has had significant adverse consequences in some of our
acquisitions and could occur in the future. These difficulties
could disrupt our ongoing business, strain our resources,
distract our workforce and divert our management’s
attention from our
day-to-day
operations. Acquisitions may also result in lower than expected
sales and net income, higher than expected costs and liabilities
or a need to allocate resources to manage unexpected operating
difficulties.
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