Company: CIMO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001628280-25-006426
Chunk: 61

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 1A
Chunk 61
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 as well as negatively affecting economic growth and result in disruptions in the financial markets.

Risks Related to Our Recent Acquisition and Investment Management and Advisory Services

We may be unable to successfully integrate and realize the anticipated benefits of the Palisades Acquisition, which may adversely affect our operations.

Following the Palisades Acquisition, the scope of operations of our business has increased beyond the scope of operations of our business prior to such acquisition. Our future success depends, in part, on our ability to manage our expanded business, which may pose substantial challenges for management, including challenges related to the management and monitoring of new operations and associated increased costs and complexity, including regulatory complexity. The success of the Palisades Acquisition will also depend, in part, on our ability to successfully integrate the acquired operations with our business and realize the anticipated benefits, including synergies, cost savings, innovation and operational efficiencies from the business combination. If we are unable to achieve these objectives within the anticipated timeframe, or at all, the anticipated benefits may not be realized fully, or at all, or may take longer to realize than expected, and the value of our common stock may be harmed. 

The operations acquired through the Palisades Acquisition are subject to certain of the same risks as our existing business. We are, however, subject to additional risks relating to our role as investment manager and advisor, including risks arising from our ability to attract and retain clients for our non-discretionary investment management and advisory services and investors for any new Discretionary Funds, fulfill fiduciary duties associated with our role as investment manager and advisor, and comply with regulatory requirements, as well as other risks described in “—Risks Related to Our Recent Acquisition and Investment Management and Advisory Services—.” 

The Palisades Acquisition and its integration into our business may result in material challenges, including, without limitation: 

•the diversion of management’s attention from our ongoing business as a result of the devotion of time and resources to the Palisades Acquisition; 

•addressing possible differences in business backgrounds, corporate cultures and management philosophies; 

•maintaining employee morale and attracting, motivating and retaining management personnel and other key employees;

•complying with an expanded regulatory framework, including the Advisers Act and other regulations related to investment management and advisory services;

•the possibility of faulty assumptions underlying expectations regarding the Palisades Acquisition;

•retaining existing business relationships and attracting new business relationships;

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•consolidating corporate and administrative infrastructures and eliminating duplicative operations;

•unanticipated issues