(Left) FTI Consulting's Roger Carlile and International Risk founder Steve Vickers shake hands on the deal

New York-listed FTI Consulting Inc. has acquired Hong Kong-based risk mitigation company International Risk Ltd. in a HK$93 million (US$12m) deal which both parties describe as a ‘perfect fit'.

The acquisition will enable the American premier provider of problem solving consulting and technology services to grow its business in the Asia Pacific region, using International Risk's Asian offices as ‘blast-off platforms'.

"International Risk is a clear choice as both our companies share the same synergy and core values of integrity, independence and insight," said Roger Carlile, FTI's Senior Managing Director and Practice Leader in Forensic and Litigation Consulting.

Much needed base

"Hong Kong is the gateway to the Asia Pacific region and a centre for economic development for most European and US investments. So Hong Kong is a much needed base to introduce new products and services," he added.

"It was the right time for a merger with FTI," said Steve Vickers, the former Head of the Royal Hong Kong Police Criminal Intelligence Bureau who set up International Risk in 2000, initially within PricewaterhouseCoopers.  He subsequently executed a management buyout of the firm in 2002.

"In the almost four years since we executed the management buyout, International Risk has grown quite radically, albeit organically. We recognised that to be able to take the company to the next logical level we needed a partner with a very substantial US platform and, equally importantly, one that also shared our core values."

FTI, with a market capitalisation of over US$1 billion, 2005 revenues of US$538 million, a listing on the main board of the New York Stock Exchange and offices in 25 US cities as well as London and Melbourne ‘fitted all the criteria'.

Marriage of strengths

"The marriage of FTI's scale, professional expertise, leading edge performance and huge US presence, coupled with International Risk's operational platforms in Hong Kong, Tokyo, Singapore and Beijing, was a terrific match," he added.

Mr Vickers said Hong Kong with its rule of law, sound financial, legal and accounting structures, will remain ‘Airstrip One' for Asia.

"Let's face it, Hong Kong is a stable location surrounded by an unstable regional environment often fraught with political risk. In good and bad times, there are always risk related disputes, and foreign companies coming to this part of the world desperately need political risk assessments and in-depth investigative due diligence; they use our services.

"In good times, our due diligence business will thrive.  In market downturns, our fraud and restructuring services will benefit significantly.  Essentially in a bear market, problems or ‘rocks in the water' will become more apparent as the level of the water/economy declines.  International Risk/ FTI are well equipped to deal with both scenarios."

Potential unlimited

Mr Vickers wryly commented that there had been no outbreak of honesty anywhere in the world; therefore business would undoubtedly be good. "Brand protection is also a critical area of interest to our US and Japanese clients."

"There is also huge potential in Asia for the computer forensics business," he said. "Ninety-five per cent of the world's records are now in electronic medium. The ability to recover these within a forensic methodology to support litigation, business disputes, liquidation and the rest is absolutely critical."

Related links
FTI Consulting  
International Risk