American Home Shield 2010 Annual Report Download - page 19

Table of Contents
Future acquisitions could impact our reputation, business, financial position, results of operations and cash flows.
We plan to continue to pursue opportunities to expand through selective acquisitions. Our ability to make acquisitions at reasonable prices and to
integrate acquired businesses is an important factor in our future growth. We cannot ensure that we will be able to manage or integrate acquired businesses
successfully and/or retain customers of the acquired businesses. Any inability on our part to consolidate and manage growth from acquired businesses could
have an adverse impact on our reputation, business, financial position, results of operations and cash flows and there can be no assurance that any acquisition
that we make in the future will provide us with the benefits that were anticipated when entering into such acquisition. The process of integrating an acquired
business may create unforeseen difficulties and expenses, including the diversion of resources needed to integrate new businesses, technologies, products,
personnel or systems; the inability to retain employees, customers and suppliers; the assumption of actual or contingent liabilities; failure to effectively and
timely adopt and adhere to our internal control processes; write-offs or impairment charges relating to goodwill and other intangible assets; unanticipated
liabilities relating to acquired businesses; and potential expense associated with litigation with sellers of such businesses.
We are subject to various restrictive covenants that could adversely impact our business, financial position, results of operations and cash flows.
From time to time, we enter into noncompetition agreements, especially in connection with dispositions, that restrict us from entering into lines of
business or operating in certain geographic areas into which we may desire to expand our business. We also are subject to various non-solicitation and no-hire
covenants that may restrict our ability to solicit potential customers or employees. To the extent that such restrictive covenants prevent us from taking
advantage of business opportunities, or if we fail to comply with them, our business, financial position, results of operations and cash flows may be adversely
impacted.
Our future success depends on our ability to attract and retain trained workers and third party contractors.
Our future success and financial performance depend substantially on our ability to attract, retain and train workers and attract and retain third party
contractors. Our ability to conduct our operations is in part impacted by our ability to increase our labor force, including on a seasonal basis, which may be
adversely impacted by a number of factors, including immigration reform or lack thereof, which may negatively impact the number of foreign nationals
available to engage in seasonal employment. In the event of a labor shortage, we could experience difficulty in delivering our services in a high-quality or
timely manner and could be forced to increase wages in order to attract and retain employees, which would result in higher operating costs and reduced
profitability.
We may be required to recognize additional impairment charges.
We have significant amounts of goodwill and intangible assets and have incurred impairment charges in the past with respect to goodwill and intangible
assets. In accordance with applicable accounting standards, we test for impairment annually, or more frequently if there are indicators of impairment, such as:
significant adverse changes in the business climate;
adverse actions or assessments by regulators;
unanticipated competition;
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