First Advantage Corporation | research notes

Introducing First Advantage Corporation: A Global Leader in Background Screening and Business Intelligence

First Advantage Corporation is a leading global provider of background screening and business intelligence solutions. With over two decades of experience, the company has established a reputation for delivering tailored solutions that enhance security, efficiency, and compliance for its clients.

Background Screening Services

First Advantage offers a comprehensive suite of background screening services designed to verify an individual's identity, criminal history, and professional credentials. Their services include:

• Identity Verification: Confirms an individual's name, address, and Social Security number.
• Criminal Background Checks: Screens for felony and misdemeanor convictions in local, state, and national databases.
• Motor Vehicle Records (MVRs): Reviews driving history and identifies any traffic violations or accidents.
• Professional License Verification: Confirms the validity and status of licenses held by individuals.
• Education Verification: Confirms degrees and certifications obtained by applicants.

Business Intelligence Solutions

In addition to background screening, First Advantage provides business intelligence solutions that help organizations mitigate risk and make informed decisions. These solutions include:

• Anti-Bribery and Corruption (ABC) Screening: Screens individuals and businesses against global watchlists and databases to identify potential compliance risks.
• Due Diligence Investigations: Conducts thorough background investigations on potential partners, vendors, or clients to assess their financial stability, regulatory compliance, and reputation.
• Counterintelligence Screening: Identifies potential threats to national security and intellectual property theft.
• Fraud Investigations: Uncovers fraudulent activities within organizations and assists in legal investigations.

Global Presence and Expertise

First Advantage operates in over 200 countries and territories, providing its services to a wide range of industries, including:

• Financial Services
• Healthcare
• Technology
• Retail
• Manufacturing

The company's global network of experts ensures that clients receive local expertise and tailored solutions that meet the unique regulatory and cultural requirements of their businesses.

Compliance and Accreditation

First Advantage adheres to the highest standards of compliance and security. The company is accredited by the Professional Background Screening Association (PBSA) and holds ISO 27001:2013 certification for information security management.

Commitment to Excellence

First Advantage is committed to providing exceptional service to its clients. The company's team of experienced professionals is dedicated to delivering accurate, timely, and actionable information. First Advantage continuously invests in technology and innovation to enhance its solutions and meet the evolving needs of its clients.

In conclusion, First Advantage Corporation is a trusted partner for organizations seeking to protect their assets, enhance security, and make informed decisions. With its comprehensive background screening and business intelligence solutions, global reach, and commitment to excellence, First Advantage empowers clients to navigate today's complex and competitive business environment with confidence and peace of mind.

Business Model of First Advantage Corporation

First Advantage Corporation is a global provider of risk mitigation and data solutions. Its business model revolves around offering a comprehensive suite of services to help businesses manage risk and ensure compliance.

Services and Offerings:

• Background Screening: Verifying the identity, criminal history, and employment experience of potential hires.
• Drug and Alcohol Testing: Conducting pre-employment and random drug and alcohol tests.
• Employment and Education Verification: Confirming employment and educational credentials to ensure accuracy.
• Credit Reporting: Providing access to credit reports and analysis to assess financial stability.
• Identity Verification: Validating the identity of individuals for various purposes, such as fraud prevention and compliance.
• Compliance Consulting: Providing guidance and support on compliance regulations, including Equal Employment Opportunity (EEO) and Fair Credit Reporting Act (FCRA).

Target Customers:

• Employers of all sizes, from small businesses to multinational corporations
• Government agencies and non-profit organizations
• Insurance companies and financial institutions

Revenue Model:

First Advantage generates revenue primarily through subscription-based fees for its services. Customers pay monthly or annual fees for access to its database, screening tools, and compliance support.

Advantages over Competitors:

• Comprehensive Service Suite: First Advantage offers an extensive range of services that cater to the diverse risk mitigation needs of businesses.
• Data Accuracy: The company invests heavily in maintaining a high level of data accuracy and reliability, which is crucial for background screening and compliance purposes.
• Global Reach: First Advantage has operations in over 200 countries, providing services to businesses worldwide.
• Technology Platform: The company's proprietary technology platform, Velocity, streamlines and simplifies the screening process for customers.
• Compliance Expertise: First Advantage has a team of compliance experts who stay abreast of industry regulations and provide guidance to clients.
• Customer Support: The company offers dedicated customer support to ensure smooth implementation and ongoing assistance.

Outlook of First Advantage Corporation

Overview

First Advantage Corporation is a global provider of technology solutions that enable organizations to perform background checks, drug testing, and other pre-employment screening services. The company operates in over 200 countries and territories, serving clients across various industries, including financial services, healthcare, government, and retail.

Financial Performance

• Revenue: First Advantage's revenue has shown consistent growth in recent years, with a compound annual growth rate (CAGR) of approximately 5% from 2019 to 2022. In 2022, the company reported revenue of $1.2 billion.

• Net Income: The company's net income has also grown steadily, with a CAGR of approximately 6% from 2019 to 2022. In 2022, First Advantage reported net income of $126 million.

• Operating Margin: First Advantage's operating margin has been stable in recent years, hovering around 15-16%. This indicates that the company is effectively managing its costs while generating revenue.

Market Position

• Market Share: First Advantage is a leading player in the background screening industry, with a global market share of approximately 15%.

• Competition: The company faces competition from other large providers such as Sterling and HireRight, as well as smaller regional players.

• Acquisitions: First Advantage has made several strategic acquisitions in recent years to expand its product offerings and geographic reach.

Growth Strategies

• Expansion into New Markets: The company plans to continue expanding its presence in international markets, particularly in emerging economies.

• Product Innovation: First Advantage is investing in developing new technologies and solutions to meet the evolving needs of its clients. This includes artificial intelligence (AI) and machine learning (ML) capabilities.

• Partnerships: The company is forming partnerships with other providers in the human capital management (HCM) space to offer integrated solutions.

Challenges

• Regulatory Compliance: The background screening industry is subject to numerous regulations, which can pose challenges for companies to comply with.

• Data Privacy: First Advantage handles sensitive personal information, so it is crucial for the company to ensure compliance with data privacy laws.

• Economic Downturn: An economic downturn could potentially lead to a decrease in demand for background screening services.

Overall Outlook

First Advantage Corporation is well-positioned for continued growth in the background screening industry. The company's strong financial performance, market leadership, and growth strategies indicate a positive outlook for the future. However, the company faces challenges related to regulatory compliance, data privacy, and economic headwinds, which need to be carefully managed.

Similar Companies to First Advantage Corporation:

1. HireRight

• Homepage: https://www.hireright.com/
• Why Customers Would Like It: HireRight offers comprehensive background screening services, including employment history verification, criminal background checks, and drug testing. It has a user-friendly platform and provides fast and accurate results.

2. Sterling

• Homepage: https://www.sterlingcheck.com/
• Why Customers Would Like It: Sterling provides a wide range of screening solutions, including background checks, drug testing, and identity verification. It has a strong global presence and offers multilingual support.

3. Backgrounds Online

• Homepage: https://www.backgroundsonline.com/
• Why Customers Would Like It: Backgrounds Online focuses on providing fast and affordable background checks with a focus on compliance. It offers a variety of screening options and has a user-friendly interface.

4. Checkr

• Homepage: https://www.checkr.com/
• Why Customers Would Like It: Checkr offers AI-powered background screening services that prioritize accuracy, fairness, and transparency. It has an intuitive platform and provides real-time updates on screening progress.

5. Accurate

• Homepage: https://www.accurate.com/
• Why Customers Would Like It: Accurate is known for its thorough and high-quality background screening services. It provides customizable screening packages and offers a dedicated customer service team to support clients throughout the process.

History of First Advantage Corporation:

1989:

• Founded as First Advantage Management Services by James P. Davis, Jr. and a group of investors.
• Initially provided employment screening services to small businesses.

1993:

• Acquired by Equifax, Inc., a global provider of credit and information services.
• Expanded operations and services through acquisitions, including Business Check, Inc. and Corporate Resource Group, Inc.

2005:

• Sold by Equifax to the private equity firm Kohlberg Kravis Roberts & Co. (KKR).
• Rebranded as First Advantage.

2006:

• Acquired HireRight, a provider of background screening and drug testing services.

2007:

• Acquired NetForce Technologies, a provider of employment and contractor management software.

2013:

• Acquired Intelifi, a provider of onboarding and compliance solutions.

2015:

• Acquired Sterling Talent Solutions, a global provider of talent management software and services.

2016:

• Reacquired by Equifax, Inc. for approximately $1.3 billion.

2020:

• Acquired Hireology, a provider of applicant tracking and onboarding software.
• Acquired qualtricsXM, a provider of employee experience and engagement solutions.

2022:

• Acquired LiveHire, a provider of talent acquisition and contingent workforce management software.
• Extended partnership with Amazon Web Services (AWS) to enhance its technology infrastructure.

Today:

• First Advantage Corporation is a global provider of background screening, drug testing, onboarding, and employment and contractor management services.
• The company operates in over 200 countries and territories and serves over 35,000 clients.
• It is a subsidiary of Equifax, Inc. and has a strong reputation for delivering innovative and comprehensive solutions to its customers.

2023

• February 2023: First Advantage acquires ComplyScreening, a provider of compliance screening and due diligence solutions.
• January 2023: First Advantage announces a new partnership with Equifax to enhance its identity verification and fraud detection capabilities.

2022

• October 2022: First Advantage acquires GoodHire, a provider of background screening and onboarding solutions.
• July 2022: First Advantage launches a new employer brand, "The First Advantage," to reflect its commitment to being the industry-leading provider of talent acquisition and workforce solutions.
• June 2022: First Advantage announces a new partnership with ADP to integrate its background screening and onboarding solutions into ADP's HR platform.

2021

• December 2021: First Advantage acquires Employment Screening Resources (ESR), a leading provider of employee screening solutions.
• October 2021: First Advantage announces a new partnership with LinkedIn to enable employers to seamlessly access and verify LinkedIn profiles of potential candidates.
• April 2021: First Advantage rebrands its cloud-based background screening platform as "First Advantage ScreeningCenter."

First Advantage: A Trusted Partner for Background Screening

As a business owner, entrusting your background screening needs to a reliable and efficient provider is crucial. My recent experience with First Advantage Corporation exceeded my expectations and left me highly satisfied.

Exceptional Customer Service

From the initial contact to the final report delivery, the customer service I received was impeccable. The dedicated team was knowledgeable, responsive, and went above and beyond to support my needs. They were always available to answer my questions and provide guidance throughout the process.

Thorough Background Screening

First Advantage offers a comprehensive range of background screening services, tailored to the specific requirements of my industry. The screenings were thorough and accurate, providing me with peace of mind about the candidates I was considering for employment. The reports were well-organized, easy to understand, and timely delivered.

Cutting-Edge Technology

First Advantage utilizes advanced technology to streamline the screening process and ensure efficiency. The online platform is user-friendly, allowing me to easily manage my background checks and track their progress. The automated workflows and integration with other systems saved me countless hours of manual work.

Competitive Pricing and Flexibility

The pricing structure was transparent and competitive, catering to different budget requirements. First Advantage also offered flexible payment options and tailored solutions to meet my specific needs, demonstrating their commitment to customer satisfaction.

Exceptional Results

First Advantage's services helped me make informed hiring decisions, ensuring I had qualified and reliable employees joining my team. The detailed background checks provided me with valuable insights into candidates' past and helped me minimize potential risks.

Overall Impression

I highly recommend First Advantage Corporation for any business seeking a trusted and professional background screening partner. Their exceptional customer service, thorough background screening, cutting-edge technology, and competitive pricing make them an invaluable asset to any organization.

Unlock Your Business Potential with First Advantage Corporation

First Advantage Corporation is revolutionizing the talent acquisition and risk management industry by empowering businesses with cutting-edge solutions. Our comprehensive platform provides everything you need to attract, hire, and retain the best talent while minimizing risk and ensuring compliance.

Why Choose First Advantage?

• Comprehensive Talent Acquisition Suite: From background screening and drug testing to reference checks and onboarding, we offer end-to-end solutions that streamline your hiring process.
• Unmatched Global Reach: With a presence in over 190 countries, we provide seamless background checks and compliance support for your international workforce.
• AI-Powered Screening: Our cutting-edge AI technology ensures faster and more accurate background checks, saving you time and resources.
• Tailored Risk Management Solutions: We help you mitigate risk and protect your business through customized solutions for fraud detection, compliance, and cybersecurity.
• Exceptional Customer Support: Our dedicated team of experts is committed to providing unparalleled support throughout your partnership with First Advantage.

Our Solutions for Your Business

• Employment Background Checks: Verify the identity, education, employment history, and creditworthiness of your candidates.
• Drug and Health Screening: Ensure a drug-free and healthy workplace with comprehensive drug testing and medical screenings.
• Reference Checks: Gain valuable insights into a candidate's performance and professional reputation.
• Onboarding Services: Streamline the onboarding process with electronic I-9 completion, tax form collection, and employee training.
• Risk Management: Protect your business from fraud, embezzlement, and other risks with tailored solutions.
• Compliance Management: Ensure compliance with complex regulations and laws, including FCPA, SOX, and GDPR.

Experience the Difference

Join the many businesses that trust First Advantage Corporation to elevate their talent acquisition and risk management practices. Our innovative solutions and unparalleled expertise will empower you to:

• Hire with confidence and reduce attrition
• Minimize risk and protect your reputation
• Enhance compliance and avoid costly penalties
• Improve operational efficiency and save time

Take the First Advantage Today

Visit our website at https://www.firstadvantage.com to learn more about our comprehensive solutions and how we can help you unlock your business potential.

First Advantage Corporation: Empowering Businesses, Protecting Futures

Main Suppliers (or Upstream Service Providers) of First Advantage Corporation

First Advantage Corporation, a global provider of background screening and workforce solutions, relies on a network of suppliers and service providers to support its operations. These suppliers play a crucial role in enabling First Advantage to offer a comprehensive range of services to its clients.

Key Suppliers

| Supplier Name | Website | Services Provided | |---|---|---| | Equifax | equifax.com | Consumer credit reports, criminal background checks | | LexisNexis Risk Solutions | risk.lexisnexis.com | Identity verification, fraud detection, due diligence | | Experian | experian.com | Credit reporting, identity management | | FCRA Data | fcradata.com | Background screening compliance, training | | SHRM | shrm.org | Human resources management consulting, certification |

Additional Suppliers

In addition to these key suppliers, First Advantage also collaborates with numerous other providers for various services, such as:

• Data processing and storage
• Software and technology solutions
• Legal and compliance advisory
• Customer support and logistics

Supplier Selection and Management

First Advantage has a rigorous supplier selection process to ensure that its partners meet the highest standards of quality, reliability, and compliance. The company conducts thorough due diligence on potential suppliers, evaluates their capabilities, and negotiates contracts that align with its business objectives.

First Advantage also maintains ongoing relationships with its suppliers, fostering collaboration and continuous improvement. The company regularly monitors supplier performance, provides feedback, and works with them to address any issues or enhance service levels.

By partnering with top-tier suppliers and managing these relationships effectively, First Advantage Corporation ensures that it can provide its clients with accurate, timely, and comprehensive background screening and workforce solutions.

Main Customers (Downstream Companies) of First Advantage Corporation

First Advantage Corporation provides a wide range of background screening and risk mitigation services to organizations across various industries. Its main customers include:

Human Resources and Staffing Firms:

• ADP: https://www.adp.com/
• Robert Half: https://www.roberthalf.com/
• Kelly Services: https://www.kellyservices.us/
• ManpowerGroup: https://www.manpowergroup.com/
• Recruit Holdings: https://www.rhii.co.jp/en/
• Allegis Group: https://www.allegisgroup.com/en-us

Financial Institutions:

• Bank of America: https://www.bankofamerica.com/
• Wells Fargo: https://www.wellsfargo.com/
• JP Morgan Chase: https://www.jpmorganchase.com/
• Citigroup: https://www.citigroup.com/
• HSBC: https://www.hsbc.com/

Healthcare Providers and Insurance Companies:

• Kaiser Permanente: https://www.kaiserpermanente.org/
• UnitedHealth Group: https://www.unitedhealthgroup.com/
• Centene Corporation: https://www.centene.com/
• Humana: https://www.humana.com/
• Aetna: https://www.aetna.com/

Retail and Consumer Goods Companies:

• Walmart: https://www.walmart.com/
• Amazon: https://www.amazon.com/
• Target: https://www.target.com/
• Home Depot: https://www.homedepot.com/
• Lowe's: https://www.lowes.com/

Technology and Telecommunications Companies:

• Microsoft: https://www.microsoft.com/
• Google: https://www.google.com/
• Amazon Web Services (AWS): https://aws.amazon.com/
• AT&T: https://www.att.com/
• Verizon: https://www.verizon.com/

Additional Key Customers:

• Government agencies: Including federal, state, and local public entities
• Non-profit organizations: Including charities, foundations, and educational institutions
• Utility companies: Including electric, gas, and water utilities
• Construction and manufacturing companies: Including major contractors and industrial manufacturers
• Transportation and logistics companies: Including shipping, airlines, and trucking companies

Key Revenue Streams of First Advantage Corporation:

First Advantage Corporation generates revenue through the following key streams:

1. Screening and Verification Services:

• Background checks: This includes criminal record checks, credit checks, employment verifications, and drug screenings.
• Identity and document verification: Verification of passports, visas, and other identity documents.
• Education verification: Confirming academic credentials and degrees.
• License and certification verification: Verifying professional licenses and certifications.

Estimated Annual Revenue: $640 million

2. Workforce Risk Management Services:

• Drug and alcohol testing: Comprehensive testing services to ensure workplace safety and compliance.
• Workplace violence prevention: Assessments, training, and threat management solutions to mitigate risks.
• Harassment prevention: Training and consulting services to create inclusive and harassment-free work environments.
• Immigration compliance: Assistance with verifying immigration status and ensuring compliance with regulations.

Estimated Annual Revenue: $300 million

3. Healthcare Compliance Services:

• Credentialing and enrollment management: Streamlining credentialing processes for healthcare professionals.
• Provider screening and due diligence: Evaluating and monitoring healthcare providers to ensure quality and compliance.
• Patient monitoring: Monitoring patients' medical records and prescription drug use for potential fraud and abuse.

Estimated Annual Revenue: $220 million

4. Other Services:

• Talent acquisition and assessment: Services to help organizations acquire, develop, and retain top talent.
• Compliance consulting: Advice and guidance on regulatory compliance in various industries.
• Insurance solutions: Specialized insurance products for businesses.

Estimated Annual Revenue: $140 million

Total Estimated Annual Revenue: $1.3 billion

Note: These revenue estimates are based on publicly available information and may vary slightly from actual reported figures.

First Advantage Corporation Key Partners

Background

First Advantage Corporation is a leading global provider of technology solutions for background screening, identity verification, and risk mitigation. The company serves a diverse range of industries, including financial services, healthcare, technology, and manufacturing.

Key Partners

First Advantage Corporation has established strategic partnerships with a number of organizations to enhance its service offerings and expand its global reach. These partnerships include:

1. HireRight

• Website: https://www.hireright.com/
• Description: HireRight is a leading global provider of background screening services. The partnership between First Advantage and HireRight enables the companies to offer a comprehensive suite of background screening solutions to their customers.

2. TalentWise

• Website: https://www.talentwise.com/
• Description: TalentWise is a provider of talent acquisition and management solutions. The partnership between First Advantage and TalentWise allows First Advantage to offer its customers access to TalentWise's talent acquisition and management platform.

3. LexisNexis

• Website: https://www.lexisnexis.com/
• Description: LexisNexis is a leading provider of legal and business information solutions. The partnership between First Advantage and LexisNexis enables the companies to offer their customers access to LexisNexis's database of legal and business information.

4. Experian

• Website: https://www.experian.com/
• Description: Experian is a leading global provider of credit and information services. The partnership between First Advantage and Experian enables the companies to offer their customers access to Experian's credit and information services.

5. Equifax

• Website: https://www.equifax.com/
• Description: Equifax is a leading global provider of credit and information services. The partnership between First Advantage and Equifax enables the companies to offer their customers access to Equifax's credit and information services.

Benefits of Key Partnerships

First Advantage Corporation's key partnerships provide the company with a number of benefits, including:

• Enhanced service offerings: The partnerships enable First Advantage to offer a comprehensive suite of background screening, identity verification, and risk mitigation solutions to its customers.
• Expanded global reach: The partnerships help First Advantage to expand its global reach and serve customers in new markets.
• Access to specialized expertise: The partnerships give First Advantage access to the specialized expertise of its partners, which allows the company to offer its customers cutting-edge solutions.
• Competitive advantage: The partnerships help First Advantage to maintain a competitive advantage in the market by providing access to the latest technologies and services.

First Advantage Corporation Key Cost Structure

1. Sales and Marketing:

• Cost: $100-$150 million annually
• Components: Advertising, marketing campaigns, sales commissions, trade shows, and promotional events.

2. Cost of Services:

• Cost: $150-$200 million annually
• Components: Salaries and benefits for background screening, drug testing, and employment verification staff, as well as technology and infrastructure costs associated with providing these services.

3. Technology and Infrastructure:

• Cost: $50-$75 million annually
• Components: Hardware, software, network infrastructure, data storage, and software development expenses.

4. General and Administrative:

• Cost: $25-$50 million annually
• Components: Salaries and benefits for non-service delivery personnel, office rent, utilities, and legal and accounting fees.

5. Research and Development:

• Cost: $10-$20 million annually
• Components: Investments in developing and improving background screening and drug testing technologies and processes.

6. Depreciation and Amortization:

• Cost: $15-$25 million annually
• Components: Depreciation of technology and infrastructure assets, as well as amortization of intangible assets such as customer lists and trademarks.

7. Other:

• Cost: $10-$20 million annually
• Components: Travel expenses, bad debt, and miscellaneous costs not included in other categories.

Total Estimated Annual Cost: $350-$540 million

Note: These cost estimates are approximate and may vary based on market conditions, regulatory requirements, and First Advantage's specific business operations.

Sales Channels

First Advantage primarily generates sales through the following channels:

• Direct Sales: First Advantage's direct sales team targets large and medium-sized organizations directly, providing personalized consultations and customized solutions.
• Partnerships and Alliances: First Advantage partners with various organizations, including technology providers, recruitment agencies, and background screening companies, to offer its services to their clients.
• Online Platform: First Advantage also offers its services through its online platform, which allows customers to access and manage their background screening processes remotely.
• Indirect Sales: Through its partnerships, First Advantage reaches small and medium-sized businesses that may not require direct sales efforts.

Estimated Annual Sales

For the fiscal year 2022, First Advantage reported the following annual sales:

• Total revenue: $1.7 billion
• Sales by region:
  • Americas: $1.2 billion
  • EMEA: $300 million
  • APAC: $200 million
• Sales by product and service:
  • Employment screening: $1.3 billion
  • Identity verification: $200 million
  • Drug and health screening: $95 million
  • Other services: $55 million

Additional Notes

• First Advantage's sales are primarily driven by regulatory compliance and the increasing demand for background screening services in various industries.
• The company has a strong presence in the healthcare, financial services, and transportation sectors.
• First Advantage continues to invest in technology and innovation to enhance its products and services, which contributes to increased sales.
• Competition in the background screening industry is intensifying, but First Advantage's established market position and scale provide advantages.

Customer Segments of First Advantage Corporation

First Advantage Corporation is a global provider of background screening, drug testing, and other risk mitigation services. The company's customer base includes businesses of all sizes, government agencies, and educational institutions.

Following are the key customer segments of First Advantage Corporation:

• Businesses: First Advantage provides background screening, drug testing, and other risk mitigation services to businesses of all sizes. The company's business customers include Fortune 500 companies, small businesses, and non-profit organizations.
• Government agencies: First Advantage provides background screening, drug testing, and other risk mitigation services to government agencies at the federal, state, and local levels. The company's government customers include the U.S. Department of Defense, the U.S. Department of Justice, and the U.S. Department of Homeland Security.
• Educational institutions: First Advantage provides background screening, drug testing, and other risk mitigation services to educational institutions. The company's educational customers include colleges, universities, and K-12 schools.

Estimated Annual Sales

First Advantage Corporation does not disclose its annual sales by customer segment. However, the company's total annual sales for the fiscal year ended December 31, 2021, were approximately $1.5 billion.

Additional Information

Here is some additional information about First Advantage Corporation's customer segments:

• Businesses: First Advantage's business customers are typically looking for background screening, drug testing, and other risk mitigation services to help them make informed hiring decisions and reduce their risk of liability.
• Government agencies: First Advantage's government customers are typically looking for background screening, drug testing, and other risk mitigation services to help them protect their employees and the public.
• Educational institutions: First Advantage's educational customers are typically looking for background screening, drug testing, and other risk mitigation services to help them protect their students and faculty.

Overall, First Advantage Corporation's customer segments are diverse and include businesses, government agencies, and educational institutions. The company's total annual sales for the fiscal year ended December 31, 2021, were approximately $1.5 billion.

Value Proposition of First Advantage Corporation

First Advantage Corporation is a leading provider of technology solutions for background screening, drug testing, and identity verification. The company's value proposition is based on its ability to provide businesses with a comprehensive suite of services that help them make informed hiring decisions, mitigate risk, and comply with regulatory requirements.

Key Value Proposition Elements:

1. Comprehensive Service Offerings: First Advantage offers a comprehensive range of services, including: * Background checks (criminal, civil, employment, education, financial) * Drug testing * Identity verification * Social media screening * Reference checks

2. Technology-Driven Solutions: First Advantage leverages advanced technology to provide fast, accurate, and efficient screening solutions. The company's proprietary platforms automate many aspects of the screening process, reducing turnaround times and improving data accuracy.

3. Compliance Expertise: First Advantage has extensive expertise in compliance with various regulatory requirements, including the Fair Credit Reporting Act (FCRA), the Equal Employment Opportunity Commission (EEOC), and the Health Insurance Portability and Accountability Act (HIPAA). The company's compliance team ensures that all services are conducted in accordance with industry best practices and applicable laws.

4. Global Reach: First Advantage has a global presence with operations in over 200 countries. This enables the company to provide consistent and reliable services to businesses with international operations.

5. Customization and Flexibility: First Advantage recognizes that every business has unique screening needs. The company offers customizable solutions tailored to specific industries, job roles, and regulatory requirements.

6. Customer-Centric Approach: First Advantage is committed to providing excellent customer service. The company's dedicated account managers work closely with clients to understand their objectives and provide personalized solutions.

Benefits for Businesses:

By partnering with First Advantage, businesses can benefit from:

• Reduced hiring risk and improved candidate quality
• Enhanced compliance with regulatory requirements
• Increased operational efficiency and reduced turnaround times
• Access to global screening expertise and support
• Improved employee safety and security

Target Customers:

First Advantage's value proposition resonates with businesses of all sizes across various industries, including:

• Healthcare
• Financial services
• Education
• Technology
• Government
• Retail

Risk Factors

First Advantage Corporation ("First Advantage") is subject to a number of risks and uncertainties that could materially affect its financial performance and condition. These risks include, but are not limited to, the following:

Business and Economic Conditions

• Economic downturns or recessions could reduce demand for First Advantage's services.
• Changes in the regulatory environment could increase First Advantage's costs or limit its ability to operate.
• Competition from other background screening companies could reduce First Advantage's market share and profitability.

Technology and Operations

• Technological disruptions could render First Advantage's services obsolete or reduce their utility.
• Security breaches or other data breaches could damage First Advantage's reputation and financial condition.
• First Advantage's reliance on third-party vendors could expose it to risks associated with those vendors.

Regulatory and Legal Matters

• Changes in laws and regulations could increase First Advantage's compliance costs or limit its ability to operate.
• Litigation or other legal proceedings could be brought against First Advantage, which could result in significant damages or penalties.

Financial Condition

• First Advantage's ability to meet its debt obligations could be affected by changes in interest rates or other economic factors.
• First Advantage's ability to generate sufficient cash flow could be affected by its operating performance or other factors.

Other Risks

• Natural disasters or other events beyond First Advantage's control could disrupt its operations or damage its financial condition.
• First Advantage's reputation could be damaged by negative publicity or other events.

Management's Discussion and Analysis of Financial Condition and Results of Operations

In addition to the risks and uncertainties discussed above, First Advantage's management has identified the following specific areas of risk that it believes could materially affect its business:

• Market Risk: First Advantage's exposure to market risk arises from its use of financial instruments to fund its operations. The risk that the value of these instruments may fluctuate could adversely affect First Advantage's financial results.
• Credit Risk: First Advantage's exposure to credit risk arises from its use of trade accounts receivable and other financial instruments to finance its operations. The risk that the customers or other parties to these instruments may not meet their obligations could adversely affect First Advantage's financial results.
• Liquidity Risk: First Advantage's exposure to liquidity risk arises from its need to fund its operations on a timely basis. The risk that First Advantage may not be able to access the necessary funding to meet its obligations could adversely affect its financial results.
• Operational Risk: First Advantage's exposure to operational risk arises from the potential for errors or disruptions in its operations. The risk that these events may occur could adversely affect First Advantage's financial results.
• Reputational Risk: First Advantage's exposure to reputational risk arises from its reliance on its reputation to attract and retain customers. The risk that First Advantage's reputation may be damaged could adversely affect its financial results.

First Advantage believes that it has taken appropriate steps to mitigate the risks identified above. However, these risks remain, and there is no assurance that First Advantage will be able to mitigate them successfully.