Management Discussion & Analysis  income are expected to be minimal, as current capital expenditures consist of office furniture and computer  equipment. The Corporation plans to continue to seek out and enter into transactions accretive to the Corporation's  earnings per share in the current Private Company Partners and other private businesses. Certain information contained herein may be considered to be future oriented financial information or  financial outlook under applicable securities laws, the purpose of providing such information in this  MD&A is to demonstrate the visibility the Corporation has with respect to its revenue streams, subject to  the risks identified for the business, and readers are cautioned that the information may not be appropriate  for other purposes. See also “Forward Looking Information” below.  An investment in our securities involves a number of risks. The risks and uncertainties described below are  all of the risks that we know about and that we have deemed to be material to our business or results of our  operations. When reviewing forward-looking statements and other information contained in this MD&A,  investors and others should carefully consider these factors, as well as other uncertainties, potential events  and industry and company-specific factors that may adversely affect our future results. We operate in a very  competitive and rapidly changing environment. New risk factors emerge from time to time and it is not  possible for Management to predict all risk factors or the impact of such factors on our business. We  assume no obligation to update or revise our risk factors or other information contained in this MD&A to  reflect new events or circumstances, except as may be required by law.  We have organized our risks into the following categories:  Although Alaris currently has seven Private Company Partners, Alaris continues to have limited  diversification in its Private Company Partners. The LifeMark Transaction permitted Alaris to rebalance  and improve the diversification of our revenue stream. However, Alaris does not have stringent fixed  guidelines for diversification with respect to our Private Company Partners. At any given point in time, we  may have a significant portion of our assets dedicated to a single business or industry. In the event that any  such business or industry is unsuccessful or experiences a downturn, this could have a material adverse  effect on our business, results from operations and financial condition.  A key element of our growth plan is adding new Private Company Partners and making additional  investments in the initial Private Company Partners in the future. Our ability to identify and complete new  investment opportunities is not guaranteed. Achieving the benefits of future investments will depend in  part on successfully identifying and capturing such opportunities in a timely and efficient manner and in  structuring such arrangements to ensure a stable and growing stream of distributions.  Alaris Royalty Corp. 2011 Annual Report   65  RISKS AND UNCERTAINTY  GLYPH<g120> Strategic Risk Factors Relating to our Business  GLYPH<g120> Operational and Financial Risk Factors Relating to Our Business  GLYPH<g120> Risk Factors Relating to our Private Company Partners  S StrategicRiskFactorsRelatingtoOurBusiness  We have limited diversification in our Private Company Partners  WemaynotcompleteorrealizetheanticipatedbenefitsofourPrivateCompanyPartnerarrangements 