1371489--3/27/2008--Information_Services_Group

related topics

{system, service, information}

{customer, product, revenue}

{personnel, key, retain}

{stock, price, share}

{product, market, service}

{operation, international, foreign}

{cost, operation, labor}

{property, intellectual, protect}

{competitive, industry, competition}

{interest, director, officer}

{stock, price, operating}

{debt, indebtedness, cash}

{product, candidate, development}

{control, financial, internal}

The loss of key executives could adversely affect our business. If we are unable to maintain a current prospectus relating to the common stock underlying our warrants, our warrants may have little or no value and the market for our warrants may be limited. We may choose to redeem our outstanding warrants at a time that is disadvantageous to our warrant holders. Our outstanding warrants may be exercised in the future, which would increase the number of shares eligible for future resale in the public market and would result in dilution to our stockholders. This might have an adverse effect on the market price of the common stock. If the private placement prior to the IPO was not conducted in compliance with applicable law, the ISG Inside Stockholders may have the right to rescind the units purchased in the private placement. To complete the acquisition, we incurred a substantial amount of debt, which may limit our ability to fund general corporate requirements and obtain additional financing, limit our flexibility in responding to business opportunities and competitive developments and increase our vulnerability to adverse economic and industry conditions. We may fail to realize the cost reductions and productivity improvements we anticipated as part of the TPI acquisition. Failure to maintain effective internal controls over financial reporting could adversely affect our business and the market price of our Common Stock. Risks Related to TPI's Business The rate of growth in sourcing activity and/or the use of technology in business may fall significantly below the levels that TPI currently anticipates. TPI's engagements may be terminated, delayed or reduced in scope by clients at any time. TPI's operating results may fluctuate significantly from period to period as a result of factors outside of its control. TPI depends on project-based advisory engagements, and its failure to secure new engagements could lead to a decrease in its revenues. TPI may not be able to maintain its existing services and products. TPI may not have the ability to develop and offer the new services and products that it needs to remain competitive. TPI may fail to anticipate and respond to market trends. TPI may be unable to protect its important intellectual property rights. TPI faces competition and its failure to compete successfully could materially adversely affect its results of operations and financial condition. TPI relies heavily on key members of its management team. TPI depends upon its ability to attract, retain and train skilled advisors and other professionals. TPI may have agreements with certain clients that limit the ability of particular advisors to work on some engagements for a period of time. In many industries in which TPI provides sourcing advisory services, there has been a trend toward business consolidations and strategic alliances that could limit the pool of potential clients. TPI's revenue could be adversely affected by the loss of a significant client or the failure to collect a large account receivable. TPI's international operations expose it to a variety of risks which could negatively impact its future revenue and growth. Currency exchange rate fluctuations in various currencies in which TPI does business could have a material adverse effect on its business, results of operations and financial condition. TPI may be subject to claims for substantial damages by its clients arising out of disruptions to their businesses or inadequate service and TPI's insurance coverage may be inadequate. TPI could be liable to its clients for damages and subject to liability and its reputation could be damaged if its client data is compromised. Client restrictions on the use of client data could adversely affect TPI's activities. TPI may not be able to maintain the equity in its brand name.

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1371489--3/27/2008--Information_Services_Group_Inc.