Henry Schein 2009 Annual Report Download - page 31

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acceptable replacement sources on a timely basis. There is no guarantee that we would be able to obtain such
alternative sources of supply on a timely basis, if at all. An extended interruption in the supply of our
products, including the supply of our influenza vaccine and any other high sales volume product, would have
an adverse effect on our results of operations, which most likely would adversely affect the value of our
common stock.
Our expansion through acquisitions and joint ventures involves risks.
We have expanded our domestic and international markets in part through acquisitions and joint ventures,
and we expect to continue to make acquisitions and enter into joint ventures in the future. Such transactions
involve numerous risks, including possible adverse effects on our operating results or the market price of our
common stock. Some of our acquisitions and future acquisitions may also give rise to an obligation by us to
make contingent payments or to satisfy certain repurchase obligations, which payments could have an adverse
effect on our results of operations. In addition, integrating acquired businesses and joint ventures:
• may result in a loss of customers or product lines of the acquired businesses or joint ventures;
• requires significant management attention; and
• may place significant demands on our operations, information systems and financial resources.
There can be no assurance that our future acquisitions or joint ventures will be successful. Our ability to
continue to successfully effect acquisitions and joint ventures will depend upon the following:
• the availability of suitable acquisition or joint venture candidates at acceptable prices;
• our ability to consummate such transactions, which could potentially be prohibited due to U.S. or foreign
antitrust regulations;
• the availability of financing on acceptable terms, in the case of non-stock transactions; and
• the liquidity of our investments and our ability to raise capital could be affected by the financial credit
markets.
Our acquisitions may not result in the benefits and revenue growth we expect.
We are in the process of integrating companies that we acquired and including the operations, services,
products and personnel of each company within our management policies, procedures and strategies. We
cannot be sure that we will achieve the benefits of revenue growth that we expect from these acquisitions or
that we will not incur unforeseen additional costs or expenses in connection with these acquisitions. To
effectively manage our expected future growth, we must continue to successfully manage our integration of
these companies and continue to improve our operational systems, internal procedures, working capital
management, financial and operational controls. If we fail in any of these areas, our business could be
adversely affected.
We face inherent risk of exposure to product liability and other claims in the event that the use of the
products we sell results in injury.
Our business involves a risk of product liability and other claims in the ordinary course of business, and
from time to time we are named as a defendant in cases as a result of our distribution of pharmaceutical
products, medical devices, bone regeneration and other healthcare products. Additionally, we own a majority
interest in companies that manufacture certain dental products. As a result, we are subject to the potential risk
of product liability or other claims relating to the manufacture and distribution of products by those entities.
One of the potential risks we face in the distribution of our products is liability resulting from counterfeit or
tainted products infiltrating the supply chain. In addition, some of the products that we transport and sell are
considered hazardous materials. The improper handling of such materials or accidents involving the