1210677--2/26/2009--FIRST_ADVANTAGE

related topics

{system, service, information}

{stock, price, share}

{acquisition, growth, future}

{interest, director, officer}

{tax, income, asset}

{condition, economic, financial}

{stock, price, operating}

{personnel, key, retain}

{provision, law, control}

{control, financial, internal}

{competitive, industry, competition}

{product, liability, claim}

{product, market, service}

{financial, litigation, operation}

Current difficult conditions in the mortgage and consumer credit industry, the increase in unemployment and the economy generally may materially adversely affect our business and results of operations. We are controlled by First American and as a result other stockholders have little or no influence over matters submitted to our stockholders for consideration. First American could sell its controlling interest in us or could be the subject of a merger and therefore we could eventually be controlled by an unknown third party. We have a short operating history as an independent company. We are dependent on information suppliers. If we are unable to manage successfully our relationships with a number of these suppliers, the quality and availability of our services may be harmed or could have a material adverse impact on our business. We may be subject to increased regulation regarding the use of personal information. We face significant security risks related to our electronic transmission of confidential information. First Advantage may be adversely affected by high-profile events involving data theft at a number of information services companies. We could face liability based on the nature of our services and the content of the materials provided which may not be covered by insurance. We may not be able to pursue our acquisition strategy. The integration of companies we acquire may be difficult and may result in a failure to realize some of the anticipated potential benefits of our acquisitions. The continued success of the Credit Information Group is dependent on a number of factors, some of which may be beyond First Advantage s control. We may not be able to realize the entire book value of goodwill from acquisitions. See Note 5 Goodwill and Intangible Assets for additional information regarding the impairment loss. We currently do not plan to pay dividends; however, as a controlled company we cannot assure that such a dividend will not be paid. Our business depends on technology that may become obsolete. Our Class A common stock has minimal liquidity due to its small public float. Significant stockholders may sell shares of our common stock that may cause our share price to fall. Conflict of interest may arise because certain of our directors and officers are also directors and officers of the Company s related parties. We are a party to a stockholders agreement that may impact corporate governance. Our results of operations may be affected by the seasonality of our business. We are subject to significant competition in many of the markets in which we compete. Our failure to attract and retain qualified personnel would have a material adverse effect on our business. We cannot assure that our stock price will not fall. Our capital raising efforts may dilute stockholders interests.

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1210677--2/26/2009--FIRST_ADVANTAGE_CORP