Western Union 2011 Annual Report Download - page 32

operations from postal operations, or mandate the creation or privatization of a “post bank” or they may require
multiple service providers in their network. These changes could have an adverse effect on our ability to
distribute, offer or price our services in countries that are material to our business.
Interruptions in migration patterns, including as a result of economic conditions, could adversely affect our
business, financial condition and results of operations.
Our consumer-to-consumer money transfer business relies in large part on migration, which brings workers to
countries with greater economic opportunities than those available in their native countries. A significant portion
of money transfers are sent by international migrants. Migration is affected by (among other factors) overall
economic conditions, the availability of job opportunities, changes in immigration laws, and political or other
events (such as war, terrorism or health emergencies) that would make it more difficult for workers to migrate or
work abroad. Changes to these factors could adversely affect our remittance volume and could have an adverse
effect on our business, financial condition and results of operations.
Many of our consumers work in industries that may be impacted by deteriorating economic conditions more
quickly or significantly than other industries. Reduced job opportunities, especially in construction,
manufacturing, hospitality, agriculture and retail, or overall weakness in the world’s economies could adversely
affect the number of money transfer transactions, the principal amounts transferred and correspondingly our
results of operations. If general market softness in the economies of countries important to migrant workers
occurs, our results of operations could be adversely impacted. Additionally, if our consumer transactions decline,
if the amount of money that consumers send per transaction declines, or if migration patterns shift due to weak or
deteriorating economic conditions, our results of operations may be adversely affected.
Our ability to adapt technology in response to changing industry and consumer needs or trends poses a
challenge to our business.
Our ability to compete in the markets we serve may be threatened by change, including changes in technology,
changes with respect to consumer needs, competition and industry standards. We actively seek solutions that
respond in a timely manner to new technology-based money transfer services such as Internet, phone-based
money transfer services and prepaid, stored-value and other card-based money transfer services. Failure to
respond well to these challenges could adversely impact our business, financial condition and results of
operations. Further, even if we respond well to these challenges, the business and financial models offered by
many of these alternative, more technology-reliant means of money transfer and electronic payment solutions
may be less advantageous to us than the model offered by our traditional cash/agent model.
Acquisitions and integration of new businesses create risks and may affect operating results.
We have acquired and may acquire businesses both inside and outside the United States. The acquisition and
integration of businesses involve a number of risks. The core risks involve valuation (negotiating a fair price for
the business based on inherently limited due diligence) and integration (managing the complex process of
integrating the acquired company’s people, products and services, technology and other assets in an effort to
realize the projected value of the acquired company and the projected synergies of the acquisition). In addition,
the need in some cases to improve regulatory compliance standards is another risk associated with acquiring
companies, see “Risks Related to Our Regulatory and Litigation Environment” below. Acquisitions often involve
additional or increased risks including, for example:
• managing geographically separated organizations, systems and facilities;
• managing multi-jurisdictional operating, tax and financing structures;
• integrating personnel with diverse business backgrounds and organizational cultures;
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