SMART Business Advisory and Consulting, LLC is a consulting firm that serves clients across the US and globally. SMART is headquartered in Devon, Pennsylvania with locations in the metropolitan areas of Atlanta, Chicago, New York City, Philadelphia, and internationally in London. The combined LECG/SMART entity was liquidated in March 2011 because the company was unable to service its debt obligations in the future.
Video SMART Business Advisory and Consulting
History
SMART was founded in 1988 by James J. Smart, primarily as a tax and audit firm. SMART grew rapidly into one of the 20 largest accounting and consulting firms in the US. From 1998 to 2007 under Mr. Smart, the company enjoys a compound annual growth rate of 40%. In 2002 by employing Arthur Andersen's non-voting personnel, the SMART offerings were expanded to include business consulting and consulting services. In 2007, Mr. Smart leads the recapitalization and sale to Great Hill Partners, Private Equity group. The Great Hill Partners model, which is based on financing with leverage, ultimately leads to the need for further restructuring. With the economic downturn in 2008 and heavy debt burdens, the company struggled with the repetitive replacement of CFOs, and the dismissal of the founders and CEOs. On August 17, 2009, LECG Corporation announced that it has signed a definitive agreement to join SMART.
Major developments include:
- May 1993: Great first tax outsourcing engagement
- November 1996: John Swanick joins from Deloitte and Touche to lead the practice of Insurance.
- June 1997: First major consultation engagement
- October 2001: Opening the Chicago office
- July 2002: Following Arthur Andersen LLP's confidence in June 2002 and loss of partner capital, 55 Anderson consultants led by six former partners (Joe Lanzisera, Stan Pittman, Jonathan Stomberger, Kathy Bellwoar, Bob Baxter and Neil Schneider) joined SMART and Associates to encourage the practice of the company's Business Consultancy.
- September 2002: Opening an office in New York
- October 2002: Purchased Glenn Ingram Chicago (22 people). The company reported $ 25.5 million in annual revenue.
- March 2003: Strategies Purchased: Schaumburg, Philadelphia & amp; Atlanta (21 people)
- May 2003: Purchase Grabush, Newman & amp; Co Baltimore (50 people). SMART employs about 300 people and with annual acquisitions of Grabash Newman close to $ 40 million.
- 2005: Open the Amsterdam office
- February 2006: Purchased KPMG Compensation & amp; Benefits of Practice
- September 2006: Opening an office in London
- May 2007: Great Hill Partners, LLC acquired a controlling interest in SMART for $ 60 million and by refinancing $ 60 million in debt and other obligations. CEO James Smart indicated the deal was aimed at addressing the issue that "we are capitalized thin, from day one". The deal makes Smart and 62 other partners in SMART Business Advisory with significant minority interests. Smart did not say how much of the $ 60 million was given to the partners. The SEC proxy statement details a recapitalization consisting of $ 118,634,000 of combined purchase price with almost all of Great Hill's cash investments granted to SMART principles in exchange for 80% of the voting interest.
- March 2008: Terence Montgomery is hired as CFO to replace Richard Devine.
- June 2008: Grabush, Newman & amp; Co Staff was released. August 2008: In August the company reported that founder James Smart had resigned from the CEO position, and maintained as chairman to focus on long-term strategy. In December, it was confirmed that Smart was forced out by Great Hill Partners, a private equity firm that bought 80% of the company in May 2007.
- November 2008: Steve Samek, former head of US operations Arthur Andersen, hired as CEO.
- December 2008: Terence Montgomery resigns as CFO after a short tenure. In calendar year 2008, SMART was one of the few large national consulting firms that experienced a decrease in income and a higher number of employees. Revenue is contracted at 10% while nationally the industry growth rate increases by 9%.
- August 2009: Howard Stecker resigns as CFO
- August 2009: LECG announces proposed merger with SMART. LECG will receive a $ 25 million cash investment from SMART majority shareholder Great Hill Partners in exchange for approximately 10.9 million common shares and 6.3 million preferred shares in the joint venture. LECG will assume about $ 32.4 million of SMART's net debt. The debt took place as part of the Great Hill recapitalization effort in May 2007, in which aggregate purchase price was supplemented by a term loan negotiated by Great Hill, on behalf of SMART, with a secured $ 45 million senior credit facility.
- March 31, 2011: Term loan with termination date March 31, 2011 finally proved to be the death knell of the company. Continuing losses, weak demands, high administrative costs and departure of consultants, result in the forced liquidation of the entities that merge to meet the principal and interest that have not been paid. The practices were sold quickly to meet the March 31 deadline, with the company announcing there would be no return for common shareholders as it undermined its business.
- April 5, 2011: Steve Samek announces his resignation on 5 April 2011, along with CFO Warren D. Barratt.
Maps SMART Business Advisory and Consulting
Key Staff
- Steve Samek
- Joseph L. Lanzisera
- Jim Perry
References
Source of the article : Wikipedia
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