Navigant Consulting, Inc. has acquired the practices collectively operated in Canada as Kroll Lindquist Avey. The acquisitions include: the forensic accounting, litigation consulting and business valuation of Kroll Inc. and Marsh & McLennan Companies’, Inc. risk consulting subsidiary. The transaction, structured as an asset sale, is valued at approximately US$20 million.
“This investment greatly enhances Navigant Consulting’s international and investigations presence,” stated Timothy Hart, Managing Director in Navigant Consulting’s Litigation & Investigations practice.
Kroll Linquist Avey was founded in Toronto in 1975 as Lindquist Holmes. The firm was acquired by Peat Marwick in 1985 then reverted to independent status in 1991 under the name Lindquist Avey Macdonald Baskerville. In 1998, the firm was acquired by Kroll and became Kroll Lindquist Avey, with offices in Toronto and Ottawa. Revenue and pro forma operating income in 2004 were approximately $17 million and $3.7 million, respectively, for the practices being acquired.
“Navigant Consulting has a strong reputation in the litigation and investigations consulting arena and we are looking forward to the opportunity to be part of their growing international practice,” Bob Macdonald, Chairman, Kroll Lindquist Avey, said in a press release. “The combination of Navigant’s existing team, along with our recognized presence in Canada, will allow us to bring added value and solutions to clients.”
A team of 54 billable consultants based in Toronto and Ottawa will join Navigant. Team members offer experience in forensic accounting, fraud investigations, general litigation consulting, business intelligence and business valuation services. Among the individuals joining Navigant Consulting are:
- Robert Macdonald – He has investigated hundreds of complex civil and criminal cases and presented evidence in court and before international regulatory tribunals during his 30-year career in forensic accounting. He was recently one of the lead forensic accountants for the Gomery Commission of Inquiry investigating the sponsorship scandal in the Canadian federal government.
- Alan Stewart – He has conducted many high-profile investigations throughout North America and in the United Kingdom since beginning his practice of forensic accounting in 1989.
- Ted Baskerville – One of the profession’s leading forensic accountants, he has directed high-profile investigations into corporate fraud, management and employee corruption, money laundering, commercial disputes and insurance claims throughout North America, Europe, Asia, and the Middle East during a career of more than 20 years.
- Farley Cohen – He has specialized in business valuation and the quantification of economic damages since 1987 and also serves as a mediator or arbitrator in equity valuations, income determinations, lost profits and other disputes.
“The team joining Navigant Consulting has been the premier provider of forensic accounting, litigation and valuation services in Canada for 30 years, with senior leaders that are seasoned as testifiers and as leads in prominent public investigations,” Hart adds. “The skills and expertise of Bob Macdonald and his team are extremely complementary to Navigant’s existing practice of more than 600 dispute and investigation professionals, and adds significant breadth and depth to our core Litigation and Investigations practice.”
“Despite today’s [Wednesday’s] development, we remain committed to Canada and will continue to focus on the rapid growth of our Canadian employee-screening, data recovery and legal technologies business,” Kroll CEO Simon Freakley stated in a press release.