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Risk Factors
Risks related to the Group’s business and industry
19
Worldline
2016 Registration Document
Acquisitions subject the Group to risks, including increased
debt, assumption of unforeseen liabilities and difficulties in
integrating operations.
As part of its growth strategy, the Group expects to actively
explore acquisition opportunities and alliance relationships with
other businesses that will allow the Group to increase its market
penetration, technological capabilities, product offerings and
distribution capabilities. The Group’s strategy of expanding
through acquisitions exposes it to a number of risks associated
with valuation and undisclosed liabilities (negotiating a fair price
for the business based on inherently limited diligence) and
integration of businesses (managing the complex process of
integrating the acquired company’s workforce, products,
technology and other assets so as to realize the projected value
of the acquired company and the synergies projected to be
realized in connection with the acquisition), including the
following:
the Group may not be able to find suitable businesses to
●
acquire at affordable valuations or on other acceptable
terms;
the Group may face competition for acquisitions from other
●
potential acquirers;
the Group may need to borrow money or sell equity or debt
●
securities to the public to finance future acquisitions and
may not be able to do so on acceptable terms or without
increased risk to the Group’s business;
the Group may incur substantial costs in relation to
●
acquisitions that would weigh on its income and cash flow;
the Group may encounter changes in accounting, tax,
●
securities or other regulations that could increase the
difficulty or cost for the Group to complete acquisitions;
the Group may face difficulties or additional costs complying
●
with foreign regulatory requirements;
the Group may encounter difficulties in enforcing intellectual
●
property rights in some foreign countries;
backgrounds and organizational cultures;
the Group may have difficulty integrating acquired
●
businesses, notably personnel with diverse business
the Group may incur unforeseen obligations or liabilities in
●
connection with acquisitions;
the Group may inaccurately assess disclosed liabilities in
●
connection with acquisitions;
the Group may choose joint venture partners with whom it
●
has difficulties forging a constructive and long-term
relationship;
the Group may need to devote unanticipated financial and
●
management resources to an acquired business;
the Group may not realize expected operating efficiencies or
●
product integration benefits from an acquisition;
the Group could enter markets where it has minimal prior
●
experience;
the Group may encounter difficulties entering new markets
●
due to, among other things, customer acceptance and
business knowledge of these new markets;
the Group may have difficulty managing geographically
●
separated organizations, cultures, systems and facilities;
and political conditions; and
the Group may encounter challenging general economic
●
the Group may experience decreases in earnings as a result
●
of non-cash impairment charges relating to the goodwill
recorded upon acquisitions.
acquisitions and the integration of the two companies’
operations could have an adverse effect on the Group’s
business, results of operations, financial condition or prospects.
The process of integrating operations could cause an
interruption of, or loss of momentum in, the activities of one or
more of the Group’s consolidated businesses and the possible
loss of key personnel. The diversion of the management’s
attention and any delays with the delivery of the Group’s
services or difficulties encountered in connection with
The Group depends upon a limited number of suppliers for
certain components of its products and on the performance
of certain key services by third parties.
products. For example, the Group relies on a single supplier for
an important component used in all current models of its
merchant terminals range. The Group relies upon these
suppliers to produce and deliver products on a timely basis and
at an acceptable cost or to otherwise meet the Group’s product
demands. Additionally, the Group depends upon various
financial institutions for clearing services in connection with its
Commercial Acquiring business (namely, the transmission and
processing of authorization requests and processing of clearing
and settlement instructions). Disruptions to the business,
The Group utilizes a limited number of third party suppliers and
service providers to supply certain of the IT hardware, software
and other components, including chips, used in the
development and operation of the Group’s services and
able to secure alternative suppliers in a timely manner, the
Group’s costs could increase significantly. Any of these events
could adversely affect the Group’s results of operations.
financial stability or operations, including due to strikes, labor
disputes or other disruptions to the workforce, of these suppliers
and service providers, or to their ability to produce the products
and provide the services the Group requires in accordance with
the Group’s and its customers’ requirements, could significantly
affect the Group’s ability to fulfill customer demand on a timely
basis which could materially harm its net revenue and results of
operations. If these suppliers and service providers were unable
to continue providing their services, the Group could encounter
difficulty finding alternative suppliers. Even if the Group were