World Fuel Services 2012 Annual Report Download - page 30

If we are unable to retain our senior management and key employees, our business and
results of operations could be harmed.
Our ability to maintain our competitive position is largely dependent on the services of our senior
management and key personnel. Although we have employment agreements with certain of our key
executive officers, the employment agreements do not prevent those officers from ceasing their
employment with us at any time. If we are unable to retain existing senior management and key
personnel, or to attract other qualified senior management and key personnel on terms satisfactory to
us, our business will be adversely affected. While we maintain key man life insurance with respect to
certain members of our senior management, our coverage levels may not be sufficient to offset any
losses we may suffer and there is no assurance that we will continue to maintain key man life insurance
in the future.
Businesses we have acquired or may acquire in the future as well as strategic investments
such as joint venture arrangements will expose us to increased operating risks.
As part of our growth strategy, we have been acquisitive and intend to continue to explore acquisition
opportunities of fuel resellers and other service businesses. For example, we acquired certain assets of
CarterEnergy Corporation, including the assets comprising its wholesale motor fuel distribution business
(the ‘‘CarterEnergy business’’) and certain assets of Multi Service Corporation, including the assets
comprising its transaction management business, and all of the outstanding stock of its foreign
subsidiaries (the ‘‘Multi Service business’’) in 2012. We cannot provide any assurance that we will find
attractive acquisition candidates in the future, that we will be able to acquire such candidates on
economically acceptable terms or that we will be able to finance acquisitions on economically acceptable
terms. If we acquire new businesses in the future, we may incur substantial additional indebtedness and
other expenses or we may complete potentially dilutive issuances of equity securities, which may affect
the market price of our common stock, inhibit our ability to pay dividends or restrict our operations. We
have also entered into joint venture arrangements and equity method investments intended to
complement or expand our business. These types of transactions are subject to substantial risks and
liabilities associated with their operations, as well as the risk that our relationships with our partners do
not succeed in the manner that we anticipate.
These transactions involve significant challenges and risks, including:
• our ability to effectively integrate and manage acquired businesses or strategic investments, while
maintaining uniform standards and controls;
• our ability to realize our investment and anticipated synergies in the acquired businesses or
strategic investments;
• the diversion of management’s time and attention from other business concerns, the potentially
negative impact of changes in management on existing business relationships and other
disruptions of our business;
• the risks associated with entering into businesses or markets in which we may have no or limited
direct prior experience;
• the potential loss of key employees, customers or suppliers of the acquired businesses;
• the ability to integrate the information technology (‘‘IT’’) systems of acquired businesses into our
existing IT infrastructure and manage those systems that cannot be effectively integrated;
• the requirement to write-down acquired assets as a result of the acquired business being worth
less than we paid for it;
• capital expenditure requirements exceeding our estimates;
• the risk that an acquisition or strategic investment could reduce our future earnings; and
• the assumption of material liabilities, exposure to litigation or unknown liabilities, and no or limited
indemnities.
Information technology failures and data security breaches could harm our business.
We rely upon our information technology and communications systems to support key business
functions and the efficient operation of these systems is critical to our business. Our information
technology systems, including our back-up systems, could be damaged or interrupted by power
outages, computer and telecommunications failures, viruses, security breaches, natural disasters,
and/or errors by our employees. A significant disruption in the functioning of these systems could
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