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About Fti Consulting (sc), Inc.

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 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.

Operations

FTI divides its operations into five segments: Corporate Finance/Restructuring, Economic Consulting,  Forensic and Litigation Consulting, Technology, and Strategic Communications.

The Corporate Finance/Restructuring segment brings in about 30% of total sales. It helps businesses with corporate transformation, transactions, and restructuring activities. The Economic Consulting segment brings in another 30% of sales. It is active in the fields of economic, finance, and accounting, and it provides expert insight and testimony in legal proceedings and public policy debates. The Forensic and Litigation Consulting segment brings in about 25% of sales; it has risk advisory, investigation, and disputes operations. 

The smaller segments, Technology and Strategic Communications, account for about 10% of sales each. The Technology segment provides information governance, e-discovery, and data analytics products and services. The Strategic Communications segment creates and executes communication campaigns for corporate leaders.

 

Geographic Reach

Beyond the US, where the company has offices in some 35 cities, FTI and its subsidiaries maintain facilities in more than 25 countries spanning Africa, the Asia/Pacific region, Europe, Latin America, and the Middle East. US-based clients account for the vast majority (around 70%) of sales, but international 

Sales and Marketing

FTI's advertising costs consist of marketing, advertising through print and other media, professional event sponsorship, and public relations. The company's advertising costs totaled $14.8 million for fiscal 2017, $15.9 million for fiscal 2016, and $18.2 million for fiscal 2015.

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.

Financial Performance

FTI's revenues have been trending upward for the last five years. More significantly, its net income has risen every year sin

reported revenue of $1.8 billion for fiscal 2016. That was a slight increase compared to the prior fiscal period when the company reported $1.78 billion in revenue. FTI's revenue increased $31.2 million, or 1.8%, from fiscal 2015 to fiscal 2016, including a $32.8 million, or 1.8%, estimated negative impact of FX. Excluding the estimated impact of FX, the company's revenue increased $64.0 million, or 3.6%. The increase in revenue was largely due to a higher demand for M&A and non-M&A related antitrust services, along with higher demand for restructuring services.

FTI's net income was $85 million for fiscal 2016. Net income increased $19.5 million, or 29.5%, from fiscal 2015 to fiscal 2016. The increase was mostly due to extinguishing debt, lower interest expenses in 2016, and lower income tax expenses.

FTI's net cash provided by operating activities increased $93.6 million, or 66.9%, from the end of fiscal 2015 to the end of fiscal 2016. The increase was primarily due to higher cash collections and lower payments for interest expenses and other operating expenses. The company ended the fiscal year with $233 million in cash from operations, up from $139 million at the end of fiscal 2015.

Strategy

In order to grow, FTI has diversified its service offerings and expanded its geographic reach through a number of acquisitions of niche-market firms. The company's growth strategy involves organic growth by increasing headcount and market share while expanding the industries and geographic regions in which FTI operates. However, the company reduced its headcount by around 2% in 

FTI considers strategic and opportunistic acquisition opportunities on a selective basis. The company integrates its completed acquisitions and manage investments in a way that fosters organic growth, expands its geographic presence, or complements its segments, practices, services, and industry focuses.

Mergers and Acquisitions

In 2017, FTI acquired New York-based restructuring specialist CDG Group. CDG provides turnaround management and restructuring and transaction advisory services. The firm joined FTI's Corporate Finance/Restructuring segment. 

Fti Consulting (sc), Inc.

111 EIGHTH AVN
New York, NY 10011-5201
Phone: 1 (212) 742-8964

Stats

Employer Type: Privately Owned
Senior Managing Director: Yaser Dajani
Managing Director, Public Affairs: Martin Kothe
Senior Managing Director: John Waples
Employees (This Location): 120
Employees (All Locations): 180

Major Office Locations

New York, NY

Other Locations

Chicago, IL