Management Discussion & Analysis  require equity or debt financing in order to acquire interests in new Private Company Partners or make  additional contributions to our current Private Company Partners. Although we have been successful in  obtaining such financing as and when required to date, there can be no assurance that such financing will  be available when required or will be on commercially favourable terms. A lack of availability or  commercially favourable terms could limit our growth. The ability of Alaris to arrange such financing in the  future will depend in part upon the prevailing capital market conditions as well as our business  performance.  Our ability to pay dividends is subject to applicable laws and contractual restrictions in the instruments  governing our indebtedness. The degree to which Alaris is leveraged could have important consequences for  Shareholders including: (i) our ability to obtain additional financing for working capital or investments in  the future may be limited; (ii) all or part of our cash flow from operations may be dedicated to the payment  of the principal of and interest on our indebtedness, thereby reducing funds available for future operations  or for payment of dividends; (iii) certain of our borrowings are at variable rates of interest, which exposes us  to the risk of increased interest rates; and (iv) we may be more vulnerable to economic downturns and be  limited in our ability to withstand competitive pressures. These factors may adversely impact our cash flow,  and, as a result, the amount of cash available for payment of dividends. Interest expense has been estimated for the purpose of estimating our distributable cash based on current  market conditions that are subject to fluctuations. Such fluctuations could result in an unanticipated  material increase in interest rates that could in turn have a material adverse effect on cash available for  dividend to Shareholders.  The success of Alaris and of each of our Private Company Partners depends on the abilities, experience,  efforts and industry knowledge of their respective senior management and other key employees, including  their ability to retain and attract skilled management and employees. The long-term loss of the services of  any key personnel for any reason could have a material adverse effect on the business, financial condition,  results of operations or future prospects of Alaris or a Private Company Partner. In addition, the growth  plans of Alaris and the Private Company Partners described in this MD&A may require additional  employees, increase the demand on management and produce risks in both productivity and retention  levels. Alaris and the Private Company Partners may not be able to attract and retain additional qualified  management and employees as needed in the future. There can be no assurance that Alaris or the Private  Company Partners will be able to effectively manage their growth, and any failure to do so could have a  material adverse effect on our business, financial condition, results of operations and future prospects. Alaris, its subsidiaries, and the Private Company Partners are subject to a variety of laws, regulations and  guidelines in the jurisdictions in which they operate (including Dutch, U.S., Canadian federal, provincial  and local laws, and may become subject to additional laws, regulations and guidelines in the future,  particularly as a result of acquisitions or additional changes to the jurisdictions in which they operate. The  financial and managerial resources necessary to ensure such compliance could escalate significantly in the  future which could have a material adverse effect on Alaris' and the Private Company Partners' business,  resources, financial condition, results of operations and cash flows. Such laws and regulations are subject to  change. Accordingly, it is impossible for Alaris or the Private Company Partners to predict the cost or  impact of such laws and regulations on their respective future operations. Alaris Royalty Corp. 2011 Annual Report   69  Our ability to pay dividends is affected by the degree to which we are leveraged  We and our Private Company Partners rely heavily on key personnel As a public company, we are subject to significant regulation