ANNUAL REPORT 2008 | 2009 - SinnerSchrader AG

36Joint Status Report of SinnerSchrader AG• Risks from AcquisitionsSinnerSchrader is also interested in expanding itsmarket position in Germany through targetedacquisitions. The success of acquisitions dependson the extent to which the acquired company can beintegrated in the Group structure and the desiredsynergies are achieved. In this context, acquisitionsin the field of professional services entail theparticular risk that the expertise, market knowledge,and customer relations which are being acquired arerarely permanently tied to the acquired company.Unsuccessful integration can therefore quickly lead tothe need for considerable depreciation or even a totalloss of the investment.In spite of the relevance of the risks listed above andon the basis of the available information, no risks arecurrently apparent that would threaten the futureexistence of the SinnerSchrader Group or Sinner-Schrader AG. Because of the sound businessdevelopment in the 2008/2009 financial year, theGroup’s asset and financial situation is stable.The risks are countered by opportunities, andSinnerSchrader could exceed its goals if they occur.The main opportunities lie with existing customers, the“SinnerSchrader” brand name, the positive signals forthe development of the companies taken over, and theperformance of some key members of staff, especiallythose with sales and customer care tasks. Above andbeyond what is assumed in the plans, these factorscould result in the acquisition of large new highpotentialcustomers or currently unforeseeableindividual orders from existing customers.The expansion of the business portfolio in the2008/2009 financial year resulted in synergies aboveand beyond the extent currently planned for, and italso helped to extend the customer base.Also, the rising demand for the services offered bySinnerSchrader alone could result in SinnerSchraderbeing able to achieve higher prices on the market thanassumed in the plans.Furthermore, more successful acquisitions could bringabout a very positive change in the planneddevelopment.The forecasts are based only on the organic developmentof the companies in the SinnerSchrader Group.9Major Events after theBalance Sheet DateThere were no major events after the balance sheetdate that should be reported.A special opportunity lies in the development of theposition of interactive agencies in the market formarketing and advertising services. Because of theirgrowing importance, interactive agencies could takeon a leading role among companies with respect totheir marketing and advertising services and replacethe service providers currently established there inthe coming years. As a result, higher order volumes,longer-term customer relationships, and overall highermargins could be possible for SinnerSchrader.