Avantor (AVTR) risk factors, FY2024 10-K

Risks related to our business and our industry

1. 01Significant interruptions in our operations could harm our business, financial condition and results of operations
2. 02We have been impacted by supply chain constraints and inflationary pressures
3. 03We compete in highly competitive markets. Failure to compete successfully could adversely affect our business, financial condition and results of operations
4. 04It may be difficult for us to implement our strategies for improving growth and optimizing costs
5. 05Part of our growth strategy is to pursue strategic acquisitions, which will subject us to a variety of risks that could harm our business
6. 06The customers we serve have experienced, and will continue to experience, significant industry-related changes that could adversely affect our business
7. 07Our offerings are highly complex, and, if our products do not satisfy applicable quality criteria, specifications and performance standards, we could experience lost sales, delayed or reduced market acceptance of our products, increased costs and damage to our reputation
8. 08The loss of a significant number of customers or a significant reduction in customer orders could reduce our net sales and harm our operating results
9. 09We are subject to risks associated with doing business globally, which may harm our business
10. 10Changes in exchange rates can adversely affect our financial condition, results of operations and cash flows
11. 11Our business depends on our ability to use and access information systems, and any failure to successfully maintain these systems or implement new systems to handle our changing needs could materially harm our operations
12. 12Given the nature of our business, we collect and store confidential information that customers provide in order to, among other things, purchase products and services and register on our website
13. 13Our inability to protect our intellectual property could adversely affect our business. In addition, third parties may claim that we infringe their intellectual property, and we could suffer significant litigation or licensing expenses as a result
14. 14Our trademarks are valuable assets and if we are unable to protect them from infringement, our business prospects may be harmed
15. 15We are subject to product liability and other claims in the ordinary course of business
16. 16We must develop new products, adapt to rapid and significant technological change and respond to introductions of new products by competitors to remain competitive
17. 17We depend upon the availability of raw materials
18. 18components could be impacted by the availability and price of those raw materials and maintaining relationships with key suppliers
19. 19We depend upon maintaining our relationships with suppliers
20. 20Our use of chemicals and chemical processes is subject to inherent risk
21. 21Climate change, and the legal or regulatory response thereto, may have a long-term impact on our business, financial condition and results of operations
22. 22We are highly dependent on our senior management and key employees
23. 23The indemnification provisions of acquisition agreements by which we have acquired companies may not fully protect us and as a result, we may face unexpected liabilities
24. 24We face risks related to health epidemics and pandemics
25. 25Certain of our businesses rely on relationships with collaborative partners and other third parties for development, supply and marketing of certain products and potential products, and such collaborative partners or other third parties could fail to perform sufficiently

Risks related to regulation

1. 26We are required to comply with a wide variety of laws and regulations, and are subject to regulation by various federal, state and foreign agencies, and our failure to comply with existing and future regulatory requirements could adversely affect our results of operations and financial condition
2. 27Our reputation, ability to do business and financial statements may be impaired by improper conduct by any of our employees, agents or business partners
3. 28We are subject to laws and regulations governing government contracts, and failure to address these laws and regulations or comply with government contracts could harm our business by leading to a reduction in sales to these customers or penalties
4. 29We are subject to environmental, health and safety laws and regulations, and costs to comply with such laws and regulations, or any liability or obligation imposed under such laws or regulations, could negatively impact our business, financial condition and results of operations
5. 30Changes in corporate governance and public disclosure requirements and expectations could impact compliance costs and the risks of noncompliance

Risks related to our indebtedness

1. 31Our indebtedness could adversely affect our financial condition and prevent us from fulfilling our debt or contractual obligations
2. 32Despite our current level of indebtedness, we and our subsidiaries may still be able to incur substantially more debt

Risks related to ownership of our stock

1. 33Because we have no current plans to pay cash dividends on our common stock, you may not receive any return on investment unless you sell your common stock for a price greater than that which you paid for it
2. 34If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results
3. 35regulations thereunder, and our stockholders will not be deemed to have waived our compliance with these laws, rules and regulations