ADT 2012 Annual Report Download - page 114

Our business strategy includes making acquisitions and investments that complement our existing
business. These acquisitions and investments could be unsuccessful or consume significant resources,
which could adversely affect our operating results.
We will continue to analyze and evaluate the acquisition of strategic businesses or product lines with the
potential to strengthen our industry position or enhance our existing set of products and service offerings. We
cannot assure you that we will identify or successfully complete transactions with suitable acquisition candidates
in the future. Nor can we assure you that completed acquisitions will be successful.
Acquisitions and investments may involve significant cash expenditures, debt incurrence, operating losses
and expenses that could have a material adverse effect on our business, financial condition, results of operations
and cash flows. Acquisitions involve numerous other risks, including:
• diversion of management time and attention from daily operations;
• difficulties integrating acquired businesses, technologies and personnel into our business;
• difficulties in obtaining and verifying the financial statements and other business information of
acquired businesses;
• inability to obtain required regulatory approvals and/or required financing on favorable terms;
• potential loss of key employees, key contractual relationships or key customers of acquired companies
or of us;
• assumption of the liabilities and exposure to unforeseen liabilities of acquired companies; and
• dilution of interests of holders of shares of our common stock through the issuance of equity securities
or equity-linked securities.
It may be difficult for us to complete transactions quickly and to integrate acquired operations efficiently
into our current business operations. Any acquisitions or investments may ultimately harm our business or
financial condition, as such acquisitions may not be successful and may ultimately result in impairment charges.
We may pursue business opportunities that diverge from our current business model, which may cause
our business to suffer.
We may pursue business opportunities that diverge from our current business model, including expanding
our products or service offerings, investing in new and unproven technologies, adding customer acquisition
channels and forming new alliances with companies to market our services. We can offer no assurance that any
such business opportunities will prove to be successful. Among other negative effects, our pursuit of such
business opportunities could cause our cost of investment in new customers to grow at a faster rate than our
recurring revenue and revenue from installations. Additionally, any new alliances or customer acquisition
channels could have higher cost structures than our current arrangements, which could reduce operating margins
and require more working capital. In the event that working capital requirements exceed operating cash flow, we
might be required to draw on our revolving credit facility or pursue other external financing, which may not be
readily available. Any of these factors could materially and adversely affect our business, financial condition,
results of operations and cash flows.
We may be subject to liability for obligations of The Brink’s Company under the Coal Act.
On May 14, 2010, Tyco acquired Broadview Security, a business formerly owned by The Brink’s Company.
Under the Coal Industry Retiree Health Benefit Act of 1992, as amended (the “Coal Act”), The Brink’s Company
and its majority-owned subsidiaries as of July 20, 1992 (including certain legal entities acquired in the
Broadview Security acquisition) are jointly and severally liable with certain of The Brink’s Company’s other
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