When someone has been cooking the books, FTI Consulting has a recipe for recovery. The company is one of the leading providers of consulting services related to corporate finance and restructuring (through FD International and other units). It also offers forensic accounting, litigation support, and investigative services to companies confronted with problems fraud in order to assist them in their legal defense or pursuit of recoveries. Other consulting service areas include economics, strategic and financial communications, and technology. FTI's main clients are large business enterprises and major law firms. The business was established in 1982.
Outside the US, where the company has offices in about 35 cities, FTI and its subsidiaries maintain facilities in 24 countries spanning Africa, the Asia/Pacific region, Europe, Latin America, and the Middle East. US-based clients account for the vast majority (around 75%) of sales, however.
FTI divides its operations into five segments: Corporate Finance/Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology, and Strategic Communications. The firm generates a wide diversity of its revenue across these segments; no one segment accounts for a vast majority of total sales.
Sales and Marketing
The company's advertising costs consist of marketing, advertising through print and other media, professional event sponsorship, and public relations. Advertising costs totaled $21.8 million during fiscal 2012.
FTI provides services to a diverse group of clients, including global FORTUNE 500 companies, FTSE 100 companies, global banks, major law firms, and governments and agencies throughout the world.
FTI’s revenue was flat in fiscal 2012 compared to fiscal 2011. Revenues in its Technology segment were impacted by unit-based service price declines relative to the company's mix of clients. Revenue declined in the firm's Forensic and Litigation Consulting segment due to a slowdown in regulatory cases. These revenue declines were significantly offset by strength in its Economics antitrust and financial economics practices as well as strength in its Corporate Finance restructuring business in both the US and Asia markets.
The company reported a loss of $37 million in fiscal 2012 against a profit of $104 million in fiscal 2011, due to increase in operating expenses particularly due to an impairment charge of $110 million.
In order to grow, FTI has diversified its service offerings and expanded its geographic reach through a number of acquisitions of niche-market firms.
Mergers and Acquisitions
In 2013 FTI acquired Princeton Economics Group, a prominent economic consulting firm based in Princeton, New Jersey. The acquisition added 10 professionals and further enhanced the industry-leading capacity of the firm’s Economic Consulting practice.
In 2012 it acquired the assets of KordaMentha, a corporate finance advisory and restructuring firm based in Brisbane, Australia, and the Gold Coast. It made the purchase to establish a Corporate Finance/Restructuring practice in Australia. Also in 2012 the company acquired Taylor Woodings, an Australian specialist corporate advisory firm with offices in Sydney, Melbourne, Perth, and Brisbane. The acquisition significantly expanded the geographic footprint and service offerings of FTI in Australia and added nearly 80 professionals, including nine senior managing directors, to FTI.
The previous year FTI obtained the International Arbitration and Airline Competition practices belonging to LECG Corporation. Bolstering its international business, it also purchased LECG's European competition policy, financial advisory services, and tax consultancy practices located in Brussels, London, Madrid, and Paris.