Polaris 2015 Annual Report Download - page 43

who do not partner with us, such as local banks and credit unions. There can be no assurance that retail
financing will continue to be available in the same amounts and under the same terms that had been
previously available to our customers. If retail financing is not available to customers on satisfactory terms, it
is possible that our sales and profitability could be adversely affected. Our income from financial services is
affected by changes in interest rates.
We intend to grow our business through potential acquisitions, non-consolidating investments, alliances and new
joint ventures and partnerships, which could be risky and could harm our business.
One of our growth strategies is to drive growth in our businesses and accelerate opportunities to expand our
global presence through targeted acquisitions, non-consolidating investments, alliances, and new joint ventures
and partnerships that add value while considering our existing brands and product portfolio. The benefits of
an acquisition, non-consolidating investment, new joint venture or partnership may take more time than
expected to develop or integrate into our operations, and we cannot guarantee that acquisitions,
non-consolidating investments, alliances, joint ventures or partnerships will ultimately produce any benefits. In
addition, acquisitions, non-consolidating investments, alliances, joint ventures and partnerships involve a
number of risks, including:
• diversion of management’s attention;
• difficulties in integrating and assimilating the operations and products of an acquired business or in
realizing projected efficiencies, cost savings, and synergies;
• potential loss of key employees or customers of the acquired businesses or adverse effects on existing
business relationships with suppliers and customers;
• adverse impact on overall profitability if acquired businesses or affiliates do not achieve the financial
results projected in our valuation models;
• reallocation of amounts of capital from other operating initiatives and/or an increase in our leverage
and debt service requirements to pay the acquisition purchase prices, which could in turn restrict our
ability to access additional capital when needed or to pursue other important elements of our business
strategy;
• inaccurate assessment of undisclosed, contingent or other liabilities or problems, unanticipated costs
associated with an acquisition, and an inability to recover or manage such liabilities and costs;
• incorrect estimates made in the accounting for acquisitions, incurrence of non-recurring charges and
impairment of significant amounts of goodwill, investments or other related assets that could adversely
affect our operating results;
• dilution to existing shareholders if our securities are issued as part of transaction consideration or to
fund transaction consideration; and
• inability to direct the management and policies of a joint venture, alliance, or partnership, where other
participants may be able to take action contrary to our instructions or requests and against our policies
and objectives.
Our ability to grow through acquisitions will depend, in part, on the availability of suitable acquisition targets
at acceptable prices, terms, and conditions, our ability to compete effectively for these acquisition candidates,
and the availability of capital and personnel to complete such acquisitions and run the acquired business
effectively. These risks could be heightened if we complete a large acquisition or multiple acquisitions within a
relatively short period of time. Any potential acquisition could impair our operating results, and any large
acquisition could impair our financial condition, among other things.
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