Risks From Acquisitions
SinnerSchrader is also interested in expanding its market position in Germany through targeted acquisitions. The success of acquisitions depends on the extent to which the acquired company can be integrated in the Group structure and the desired synergetic effects are achieved. In this context, acquisitions in the field of professional services entail the particular risk that expertise, market knowledge and customer relations are usually being acquired that are rarely permanently tied to the acquired company. Failure of integration can therefore quickly lead to the need for considerable depreciation right up to a total loss of the investment.
In spite of the relevance of the risks listed above and on the basis of the available information, in brief no risks are currently visible that would threaten the future existence of the SinnerSchrader Group or SinnerSchrader AG. Because of the positive business development in the 2004/2005 financial year, the asset and financial situation of the Group is stable, even after the repayment of some of the equity to the shareholders and the corresponding reduction of equity and liquidity reserve.
