Evercore (EVR) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01Difficult market conditions may adversely affect our business in many ways, including reducing the volume and value of the transactions involving our Investment Banking & Equities business, which may materially reduce our revenue or income
2. 02We depend on our senior professionals, including our executive officers, and the loss of their services could have a material adverse effect on us. If we are unable to successfully identify, hire and retain productive individuals, we may not be able to implement our growth strategy successfully
3. 03Our growth has placed, and will continue to place, significant demands on our administrative, operational and financial resources
4. 04Our revenue and profits are highly volatile, which may make it difficult for us to achieve steady earnings growth on a quarterly basis and may cause the price of our Class A common stock to decline
5. 05Our failure to deal appropriately with actual, potential or perceived conflicts of interest could damage our reputation and materially adversely affect our business
6. 06Employee misconduct, which is difficult to detect and deter, could harm us by impairing our ability to attract and retain clients while subjecting us to significant legal liability and reputational harm
7. 07The financial services industry faces substantial litigation and regulatory risks, and we may face damage to our professional reputation and legal liability
8. 08transactions often involves complex analysis and the exercise of professional judgment, including, in certain circumstances, rendering fairness opinions in connection with mergers and other transactions
9. 09We may face damage to our professional reputation if our services are not regarded as satisfactory or for other reasons
10. 10Extensive and evolving regulation of our businesses exposes us to the potential for significant penalties and fines due to compliance failures, increases our costs and limits our ability to engage in certain activities
11. 11Our business is subject to various cybersecurity risks
12. 12We are exposed to risks and costs associated with protecting the integrity and security of our clients', employees' and others' personal data and other sensitive information
13. 13Our business is subject to various operational risks
14. 14We may not be able to generate sufficient cash to service all of our indebtedness
15. 15Our clients may be unable to pay us for our services
16. 16Goodwill, other intangible assets, equity method investments and other investments represent a portion of our assets, and an impairment of these assets could have a material adverse effect on our financial condition and results of operations
17. 17Failure to maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could materially adversely affect our business
18. 18Our inability to successfully identify, consummate and integrate acquisitions and/or alliances, including through joint ventures or investments, as part of our growth initiatives could have adverse consequences to our business
19. 19We may not realize the cost savings, revenue enhancements or other benefits that we expected from our growth initiatives

Risks Related to Our Investment Banking & Equities Business

1. 20Our Equities business relies on non-affiliated third-party service providers
2. 21Underwriting and trading activities expose us to risks
3. 22If the number of debt defaults or bankruptcies declines or other factors affect the demand for our liability management and restructuring services, our liability management and restructuring revenue could be adversely affected

Risks Relating to Our Investment Management Business

1. 23The amount and mix of our AUM are subject to significant fluctuations
2. 24If the funds we manage or invest in perform poorly, we will suffer a decline in our investment management revenue and earnings, and our Investment Management business may be adversely affected
3. 25Our Investment Management business' reliance on non-affiliated third-party service providers subjects the Company to operational risks
4. 26Our agreements with the OCC require us to maintain and segregate certain assets, and our failure to comply with these agreements (including if we are required to access these assets for other purposes) could adversely affect us

Risks Related to Our International Operations

1. 27A meaningful portion of our revenues are derived from our international operations, which are subject to certain risks
2. 28Fluctuations in foreign currency exchange rates could adversely affect our results
3. 29The cost of compliance with international broker-dealer, employment, labor, benefits and tax regulations may adversely affect our business and hamper our ability to expand internationally

Risks Related to Our Organizational Structure

1. 30Our only material asset is our interest in Evercore LP, and we are accordingly dependent upon distributions from Evercore LP to pay dividends, taxes and other expenses
2. 31and current and anticipated cash needs; our capital requirements; applicable contractual, legal, tax and regulatory restrictions; implications of the payment of dividends by us to our stockholders or by our subsidiaries (including Evercore LP) to us; and such other factors as our Board of Directors may deem relevant
3. 32If Evercore Inc. were deemed an "investment company" under the 1940 Act as a result of its ownership of Evercore LP, applicable restrictions could make it impractical for us to continue our business as contemplated and could have a material adverse effect on our business

Risks Related to Our Class A Common Stock

1. 33Our employees control a significant portion of the voting power in Evercore Inc., which may give rise to conflicts of interests
2. 34Our share price may decline or we may have a significant increase in the number of shares of common stock outstanding due to the large number of shares eligible for future sale and for exchange
3. 35The market price of our Class A common stock may be volatile, which could cause the value of our Class A common stock to decline
4. 36Anti-takeover provisions in our charter documents and Delaware law could delay or prevent a change in control