Hertz 2009 Annual Report Download - page 54

ITEM 1A. RISK FACTORS (Continued)
marketing and advertising campaigns, may not have their desired effects. In addition, although our
licensing partners are subject to contractual requirements to protect our brands, it may be difficult to
monitor or enforce such requirements, particularly in foreign jurisdictions. Any decline in perceived
favorable recognition of our brands could materially and adversely affect our results of operations.
Our business operations could be significantly disrupted if we were to lose the services of
members of our senior management team.
Our senior management team has extensive industry experience, and our success depends to a
significant degree upon the continued contributions of that team. If we were to lose the services of any
one or more members of our senior management team, whether due to death, disability or termination of
employment, our ability to successfully implement our business strategy, financial plans, marketing and
other objectives, could be significantly impaired.
If we acquire any businesses in the future, they could prove difficult to integrate or disrupt our
business.
We intend to pursue the growth of our business and from time to time we will consider opportunistic
acquisitions, any of which may be significant. Any future acquisition would involve numerous risks
including:
•potential disruption of our ongoing business and distraction of management;
• difficulty integrating the acquired business; and
•exposure to unknown and/or contingent or other liabilities, including litigation arising in
connection with the acquisition and/or against any businesses we may acquire.
If we make acquisitions in the future, acquisition-related accounting charges may affect our financial
condition and results of operations. In addition, the financing of any significant acquisition may result in
changes in our capital structure, including the incurrence of additional indebtedness. We may not be
successful in addressing these risks or any other problems encountered in connection with any
acquisitions.
If we experience a change in ownership of a material percentage of our equity without obtaining
certain approvals, our results of operations and financial condition could be materially adversely
affected.
A substantial number of our airport concession agreements, as well as certain of our other agreements
with third parties, require the consent of the airports’ operators or other parties in connection with a
change in the ownership of a material percentage of our equity. Certain changes in the ownership of our
equity could also require the approval of other governmental authorities (including insurance regulators,
regulators of our retail used car sales activities and antitrust regulators), and we cannot offer assurance
that those approvals would be obtained on terms acceptable to us. If our owners were to change their
ownership of us without obtaining the necessary approvals, or if significant conditions on our operations
were imposed in connection with obtaining such approvals, our ability to conduct our business could be
impaired, resulting in a material adverse effect on our results of operations and financial condition.
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