Common use of ISI Clause in Contracts

ISI. ISI is a staffing firm providing equipment, software design and implementation assistance to two major automotive customers. It qualifies for minority treatment which gives ISI a significant advantage over competing high technology staffing firms. Given the automotive industries need to subcontract major technical projects, ISI’s minority status and now, its affiliation with a larger organization such as Solvis, it is reasonable to use a growth rate of 15%. Historical financial statements were used to estimate the pro forma results of operations and a melded gross profit rate of 15% was used based upon historical results. The risk factor, for mathematical purposes, was increased by 30% to provide for the minority interest ownership in ISI. It should be noted that Solvis assumed $622,000 of debt and $570,000 of accounts receivable. The net difference, $52,000 will be deducted from the total estimated valuation.

ISI. ISI is a staffing firm providing equipment, software design and implementation assistance to two major automotive customers. It qualifies for minority treatment which gives ISI a significant advantage over competing high technology staffing firms. Given the automotive industries need to subcontract major technical projects, ISI’s 's minority status and now, its affiliation with a larger organization such as Solvis, it is reasonable to use a growth rate of 15%. Historical financial statements were used to estimate the pro forma results of operations and a melded gross profit rate of 15% was used based upon historical results. The risk factor, for mathematical purposes, was increased by 30% to provide for the minority interest ownership in ISI. It should be noted that Solvis assumed $622,000 of debt and $570,000 of accounts receivable. The net difference, $52,000 will be deducted from the total estimated valuation.