EPAC Actuant Corp.

Risks

• Deterioration of, or instability in, the domestic and international economy and challenging end market conditions could impact our ability to grow the business and adversely impact our financial condition, results of operations and cash flows.
• If we fail to develop new products, or customers do not accept our new products, our business could be adversely affected.
• Divestitures and discontinued operations could negatively impact our business, and retained liabilities from businesses that we sell could adversely affect our financial results.
• Our growth strategy includes strategic acquisitions. We may not be able to consummate future acquisitions or successfully integrate them.
• We may not be able to realize planned benefits from acquired companies.
• The indemnification provisions of acquisition agreements may result in unexpected liabilities.
• Our goodwill and other intangible assets represent a substantial amount of our total assets.
• Our indebtedness could harm our operating flexibility and competitive position.
• The financial and other covenants in our debt agreements may adversely affect us.
• Our businesses operate in highly competitive markets, so we may be forced to cut prices or incur additional costs.
• Our international operations pose currency and other risks.
• Geopolitical unrest and terrorist activities may cause the economic conditions in the U.S. or abroad to deteriorate, which could harm our business.
• Our significant reliance on third-party suppliers for components for the manufacture, assembly and sale of our products involves risks.
• A material disruption at a significant manufacturing facility could adversely affect our ability to generate sales and result in increased costs that we cannot recover.
• Large or rapid increases in the costs of commodities and raw materials, including impact of tariffs, or substantial decreases in their availability could adversely affect our operations.
• We are subject to a wide variety of laws and regulations that may change in ways that are detrimental to our competitiveness or results.
• Costs and liabilities arising from legal proceedings could be material and adversely impact our financial results.
• Legal compliance risks could result in significant costs to our business or cause us to restrict current activities or curtail growth plans.
• Health, Safety and Environmental laws and regulations may result in additional costs.
• Our inability to attract, develop and retain qualified employees could have a material adverse impact on our operations.
• Cyber security vulnerabilities, threats and more sophisticated and targeted computer crime could pose a risk to our systems, networks, products, solutions, services and data.
• Our intellectual property portfolio may not prevent competitors from developing products and services similar to or duplicative to ours, and the value of our intellectual property may be negatively impacted by external dependencies.
• Our competitors or other persons could assert that we have infringed their intellectual property rights.
• Our customers and other business partners often require terms and conditions that expose us to significant risks and liabilities.