Andersen Consulting is bringing its brand of consulting to 17 locations nationwide as it opens offices to focus on transitioning young, Internet start-ups to initial public offerings or IPOs. The first office will open in Chicago.
The endeavor will cost Andersen more than $1.2 billion in equity during the next three years as it secures locations, consultants and opens offices. It hopes to gain back the investment through typical fees, and by becoming minority stakeholders in the start-ups.
If the market continues to develop as it has for the last several years, the thinking behind the decision was for Andersen to offer quality talent to these dot.coms, most of whom develop very small operations and grow too quickly. Andersen will employ finanical consultants, as well as marketing personnel and technology gurus to help start-ups survive.