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โ Due DiligenceRisks
1. Competition: Federal Signal Corporation faces increased competition, both domestically and internationally. Factors such as technological advances, cost advantages, and aggressive strategies by competitors may adversely affect its sales and profitability.
2. Economic Conditions: The economic conditions may have an impact on Federal Signal Corporationโs businesses. Shifts in economic activity may affect its customersโ needs and, in turn, its revenues and profitability.
3. Regulatory Risk: Federal Signal Corporation is subject to various regulatory and legal requirements which may change over time. Failure to comply with applicable laws and regulations may have a negative effect on the companyโs operating results, financial prospects and its reputation.
4. Operational Risk: Federal Signal Corporation is subject to operational risk, including the risk of disruption of operations due to natural disasters, labor disputes, technology disruptions or other events. These events may have a negative impact on its sales and profitability.
5. Capital Expenditure Risk: Capital expenditure projects may be delayed or cancelled due to economic conditions or other factors, or may result in additional costs not anticipated at the time of such decisions.