Navigant Consulting

Navigant

Type	Corporation
Traded as	NYSE: NCI S&P 600 Component
Industry	Professional services
Founded	1999
Headquarters	Chicago, Illinois, US (Global)
Area served	Worldwide
Key people	Julie M. Howard (CEO)
Revenue	$1.05B (December 31, 2015 [1])
Number of employees	5,500
Website	http://www.navigant.com

Navigant (NYSE: NCI) is a specialized professional services firm.

Based in Chicago, Illinois, Navigant has nearly 50 offices across the United States, Canada, Europe, Middle East and Asia. 2016 revenues were $1.05 billion. The company has been listed among Forbes' Best Run Small Companies and Fortune's Fastest Growing Companies. The company's stock is a member of the S&P 400 index.

History

Formation

Navigant was formed in 1999 under the name The Metzler Group Inc., a global management consulting company serving energy-based and other regulated industries. Founded in 1983 by Richard Metzler, the Metzler Group became a public company in October 1996, offering stock trades on the Nasdaq National Market under the ticker symbol “METZ.” In July 1999, the company received full shareholder approval to change the company’s name to Navigant Consulting, Inc. Shortly afterwards, Navigant Consulting’s stock listing was moved to the New York Stock Exchange (NYSE) under the ticker symbol “NCI.”^[2] The company’s new name was meant to reflect its ability to help clients navigate changing business conditions.^[3]

Mergers and acquisitions

Navigant expanded its range of services and international reach through a number of acquisitions.

In 1998, The Metzler Group merged with Peterson Consulting, an information management and technology firm specializing in information services, data processing, damage assessment and quantifying lost profits, regulatory compliance, process operations management and litigation support. Under the terms of the merger, Peterson Consulting became a wholly owned subsidiary and independent operating unit of The Metzler Group.^[4]

Navigant took advantage of the collapse of audit titan Arthur Andersen in 2002, absorbing the practices of 8 Chicago partners (plus 82 staff) in May ^[5] and the Washington DC-based Government Contacts practice (3 partners and 34 staff) the next month.^[6]

Navigant then acquired Tucker Alan in February 2004, a privately held litigation and business consulting firm specializing in core litigation support services. With offices in Los Angeles, San Francisco, and Seattle, the Tucker Alan acquisition helped strengthen Navigant’s west coast presence and further develop the firm’s national platform.^[7]

Focusing its purchases on firms in the financial services and healthcare industry, Navigant bought the corporate finance consultancy Casas Benjamin & White in February 2005. The firm focused on corporate restructuring and transactional solutions.^[8] Several months later, the Tiber Group, a healthcare management consulting firm providing healthcare executives with strategic advisory services, was also purchased.^[9]

Other 2005 acquisitions included A.W. Hutchison, the construction litigation services firm assisting owners, contractors, and counsel with distressed engagements and projects in litigation,^[10] as well as the forensic accounting and litigation consulting and business valuation practices of Kroll Lindquist Avey in Canada - a subsidiary of Kroll, Inc.^[11]

In March 2006, Navigant acquired Precept Programme Management Limited, an independent dispute advisory and program management consulting firm based in the UK.^[12] In December, the firm acquired HP3, a nationally recognized management consulting firm that assisted senior healthcare executives with clinical documentation, coding, and data solutions for improved reimbursement, compliance, and patient care.^[13]

In 2007, Navigant added two additional UK based consultancies to its portfolio: the program management and public procurement firm, Augmentis, in June 2007, followed by the Troika acquisition in August. Troika provided operational performance improvement solutions to organizations in the financial services industry.^[14]

Chicago Partners of Illinois was acquired in May 2008, adding economics expertise to the firm’s portfolio. Founded in 1994, it specialized in economic and financial analysis and assisted law firms, corporations and government agencies with securities litigation, antitrust, valuation and asset pricing, forensic accounting, intellectual property, and labor market discrimination.^[15]

In 2009, Navigant acquired The Bard Group, a Boston-based healthcare consulting firm that provided physician leadership and performance improvement services to healthcare executives, community hospitals, and physician groups in programs designed to ensure physician engagement.^[16]

In early 2010, Navigant acquired Summit Blue, a leading energy efficiency and renewable energy consulting firm and the Washington DC based economics consulting firm, Empiris. In May, Navigant acquired Daylight Forensic & Advisory LLC, an international regulatory consulting and investigative firm specializing in financial investigations, AML consulting, regulatory compliance, forensic technology services, and fraud risk management.^[17][18][19]

In October 2010, the firm has acquired EthosPartner, a national healthcare consulting group specializing in physician and hospital alignment, physician practice operations management, and physician revenue cycle management.^[20]

In July 2011, the company acquired Ignited Discovery, an electronic evidence and discovery services provider. In October 2011, the Company acquired Paragon Health, a national physician practice management and consulting firm specializing in Cardiovascular practices.^[21]

In October 2012, the company acquired Easton Associates, a strategic market consulting firm for the life sciences, healthcare, medical device and pharmaceutical industries with offices in New York, London and Beijing. 7 Mile Advisors acted as the sell-side advisor to Easton.^[22]

Services

Navigant sells four core services:

Dispute & Investigative

Navigant’s disputes and investigative professionals offer litigation consulting, forensic accounting and financial investigations, damages analysis, business valuation, and discovery management to corporate counsel and law firms. This team provides expert testimony in matters involving the state and federal courts as well as administrative and regulatory proceedings and international arbitrations.^[23]

Financial Advisory

Navigant’s corporate finance business unit, Navigant Capital Advisors (NCA) serves the middle market investment banking, restructuring, valuation, and transaction advisory needs of companies, private equity groups, lenders, and other creditor constituencies.^[24]

Economics

The Economic Consulting practice is composed of academic and industry professionals with backgrounds in economics and finance. Consultants provide economic analyses of complex legal and business issues for law firms, corporations, and government agencies.^[25]

Management Consulting

The management consulting professionals provide operational, performance and regulatory assistance to companies undergoing significant business challenges across a variety of industries including energy, financial services, government, and healthcare.^[26]

Studies/Research

The Risk Management Paradox

Navigant partnered with the Economist Intelligence Unit (EIU) to conduct a pulse survey on risk management effectiveness. The survey reached out to 180 financial executives globally and focused on the evolving role of risk management in financial institutions. According to the survey results, Financial Services companies are confident about their risk management systems. However, results suggest that the process surrounding them and ensuring effective implementation require improvement. In light of lessons learned from the credit crisis, financial services firms plan to pay more attention to the impact of risk on enterprise business and profitability, rather than merely complying with arbitrary levels of risk exposure and performance.^[27]

Credit Crisis Litigation Doubles in 2008, Navigant Consulting Study Finds

Navigant conducted a study on the number of sub prime-related filings in 2008. The study shows that cases filed in federal courts in 2008 were twice the number filed in 2007. According to the report, “2008: Seeking Relief,” the credit crisis produced 576 new litigation matters in U.S. federal courts. The number of filings peaked at 179 cases in the first quarter of 2008, but new cases continued to be filed through the year and even trended up slightly following the Lehman bankruptcy filing in September 2008. According to this report, new sub prime-related litigation matters will continue to increase in 2009.^[28]

North American Natural Gas Supply Assessment

Commissioned by the American Clean Skies Foundation, Navigant conducted a study in 2008 to assess the current state of natural gas production in North America and determine the long-term viability of natural gas as a clean energy solution. The study focused on natural gas production from three unconventional sources; tight sands, coalbed methane, and gas from shale formations. According to the study, the United States has enough natural gas reserves to last over 100 years. While all three natural gas sources have increased production in the last decade, natural gas production from shale formation had grown at an exponential rate to 5 billion cubic feet a day. Given the natural gas production of shale and recent technological advancements, researchers believe the U.S. has the potential to expand the use of domestically produced natural gas for power generation and even vehicle fuel. Navigant's conclusions as to the U.S. potential supply were considered radical at the time of the study, but have now been borne out by the industry and by the U.S. Energy Information Administration.[^[29]

Name and Branding

In March 2003, Navigant announced the launch of its new brand and visual identity. As part of the new brand strategy, all former legacy companies and subsidiaries were united under the Navigant name.^[30]

Corporate Citizenship

The firms charitable trust program, Lending A Hand foundation, has supported over 200 organizations committed to health and wellness, education and community welfare.^[31]

During 2008, Navigant hosted a number of programs to help educate and empower young people, such as the child mentor program, young women’s conference, and young persons programme in London.^[32]

Criticism

King-Harbor Accounting Scandal

In 2005, Navigant Consulting was accused of overcharging Los Angeles County in a contract to work at Martin Luther King Jr.-Harbor Hospital in Willowbrook, CA. County auditors rejected over $206,000 in expenses, including unauthorized first-class airfare to and from Los Angeles and determined that Navigant had deleted from their to-do list a number of tasks and goals that they had failed to accomplish.^[33] Despite Navigant's work, King-Harbor failed to meet federal standards for Medicare funding in 2006,^[34] prompting the county to undergo a radical restructuring plan for the hospital.^[35]

Long Island Power Authority Contract

In June 2013, the New York state Moreland Commission, which was appointed by Governor Andrew Cuomo to examine the New York utilities' handling of Hurricane Sandy, questioned some expenses in three limited instances charged by Navigant in previous years and in a press event referred its findings to federal prosecutors. Federal prosecutors later found no wrongdoing.

Accolades

• MCA Management Awards, Business Strategy Award, 2009 ^[36]
• Best Place to Launch a Career, Business Week, 2007 ^[37]
• 200 Best Small Companies, Forbes, 2006 ^[38]
• The Top 25 Consultants 2006 (Julie Howard, President & COO) Consulting Magazine, May/June 2006 ^[39]
• Hot Growth Companies, Business Week, 2005 ^[40]
• The Hot 100, Fortune, September 2005 ^[41]
• 200 Best Small Companies, Forbes, November 2004 ^[42]
• The Top 25 Consultants 2004 (William M. Goodyear, Chairman & CEO) Consulting Magazine, July 2004 ^[43]

References

External links

• Company homepage