First Advantage Corp (FA)

History and Background

First Advantage Corp. (formerly known as First American CREDCO) was founded in 2003. Initially a subsidiary of First American Financial Corporation, it later became an independent public company. Over the years, it has grown through acquisitions and organic growth, becoming a leading global provider of technology solutions for screening, verifications, safety, and compliance solutions.

Core Business Areas

• Screening Solutions: Provides background checks, identity verification, drug screening, and other screening services to help businesses make informed hiring decisions.
• Verification Services: Offers employment, education, and credential verification services to confirm the accuracy of applicant information.
• Compliance Solutions: Provides solutions to help businesses comply with employment laws and regulations.

Leadership and Structure

The leadership team consists of Scott Staples (CEO), David Pae (CFO). The organizational structure is departmental, with teams focused on sales, marketing, technology, and operations.

Key Offerings

• Background Screening: Comprehensive background checks including criminal records, credit history, and motor vehicle reports. The market is competitive with various specialized providers. Market share is estimated to be substantial and in the double-digit percentage range but public numbers are fragmented across multiple reports from different providers. Competitors include Sterling, Checkr, and Accurate Background.
• Identity Verification: Services verifying the authenticity of an individual's identity using various data sources and technologies. The industry is facing increased demand with rising identity thefts. Market share is growing with digital transformation of business processes. Competitors include Onfido, Socure, and Jumio.
• Compliance Solutions: Solutions to assist in regulatory compliance, including FCRA and EEOC. Compliance market is seeing demand increase with companies wanting to avoid legal challenges. Competitors include Mitratech, and Thomson Reuters.

Industry Overview

The background screening industry is experiencing growth due to increasing regulatory requirements and the need for businesses to mitigate risk. Technological advancements and increasing digital transformation are key trends.

Positioning

First Advantage Corp is positioned as a leading global provider of comprehensive screening and verification solutions. Their competitive advantage lies in their scale, technology, and global reach.

Total Addressable Market (TAM)

The global background screening market is estimated to be worth billions of dollars, with projections for continued growth in the coming years. The TAM is expected to be around $15 Billion USD, and First Advantage Corp is well-positioned to capture a significant portion of this market due to its established market position and wide array of services.

Key Competitors

• STER
• CHKR
• ACBI

Competitive Landscape

First Advantage Corp competes with other background screening companies based on price, service quality, technology, and global reach. They face pressure to innovate and maintain a competitive edge.

LexisNexis Risk Solutions Screening Solutions Group

• Year: 2017
• Acquisition Price (USD millions): 185
• Strategic Rationale: Expansion of capabilities and customer base in the employment screening market.

Historical Growth: First Advantage Corp has experienced growth through acquisitions and organic expansion.

Future Projections: Analyst estimates for future growth are available from financial news and analysis sources.

Recent Initiatives: Recent initiatives may include new product launches, strategic partnerships, or acquisitions. Refer to recent filings and press releases.

First Advantage is a leading background screening and verification services provider. The company is well-positioned for growth due to increasing demand for risk mitigation. Intense competition and regulatory changes pose challenges. They have shown continuous expansion through acquisitions which strengthens their portfolio and capabilities. The long term success depends on effective execution, innovation, and management of competitive forces.

Data Sources:

• Company filings (10-K, 10-Q)
• Investor relations website
• Industry reports
• Financial news sources

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Market conditions and company performance can change rapidly.