BearingPoint

Last updated
BearingPoint Europe Holdings B.V.
BearingPoint
FormerlyKPMG Consulting
(1997–2002)
Company type Partnership
Industry Management consulting, technology services
Predecessor KPMG Consulting [1]
Founded1997
(as a business unit of KPMG)
January 2000
(KPMG Consulting, LLC)
October 2002
(BearingPoint Inc.)
August 2009
(BearingPoint Europe Holdings B.V.)
Headquarters Amsterdam, Netherlands
Key people
Kiumars Hamidian (Managing Partner)
Revenue€757 million (2020) [2]
Number of employees
4,648 (2020) [2]

BearingPoint (parent company: BearingPoint Europe Holdings B.V.) is a multinational management and technology consulting firm headquartered in Amsterdam, Netherlands. [3] It has operations in 23 countries with around 4,600 employees. [2]

Contents

The firm originated from the consulting services operations of KPMG; they became a distinct business unit in 1997, and demerged entirely in 2000. After an IPO in 2001, the company was renamed BearingPoint Inc. in October 2002.

In February 2009 the company's US unit filed for Chapter 11 bankruptcy. [4] Following restructuring and a management buyout in August 2009, BearingPoint's continuing operations were organized as a Netherlands-based partnership.

History

1997 to August 2009

BearingPoint's origins lie in the consulting services operations of KPMG, which were established as a distinct business unit in 1997. KPMG had been providing consulting services to clients since its first contract with the US Navy prior to World War I. On 31 January 2000, KPMG formally spun off the consulting unit as KPMG Consulting, LLC. On 8 February 2001, the company went public on the NASDAQ market at $18 a share under the ticker "KCIN."

Over the next year and a half, the company acquired some of KPMG's country consulting practices, plus country practices and hiring from Arthur Andersen’s business consulting unit. On 2 October 2002, the company was re-named BearingPoint and the next day began trading on the New York Stock Exchange under the ticker "BE."

After the 2003 invasion of Iraq, the company acquired a $9 million contract to outline and implement new economic regulations and institutions for the country, heavily focusing on neoliberal policies such as large-scale privatizations. [5] [6] [7] According to a report by Stephen Foley, "BearingPoint employees gave $117,000 (£60,000) to the 2000 and 2004 Bush election campaigns, more than any other Iraq contractor." [8]

BearingPoint was late in filing its financial reports through 2007. The Company said its net loss for the first quarter ended 31 March 2007 narrowed as revenue grew and costs declined. The company recorded a net loss of $61.7 million, or 29 cents per share for the first quarter, compared with a loss of $72.7 million, or 34 cents per share, in the same period a year earlier. [9] The company recorded a net loss of $64.0 million, or 30 cents per share for the second quarter, compared with a loss of $2.85 million, or 1 cent per share, in the same period a year earlier. BearingPoint's shareholders' deficit was $365 million as of the close of the second quarter 2007 with a total accumulated deficit of $1.9 billion. [10] On 11 August 2008, the company reported its first net income in three years and, as of the third quarter of 2008, had reported operating income for three consecutive quarters. [11] During the third quarter of 2008, BearingPoint said its net loss was $30.5 million or $0.14 a share, an improvement of $37.5 million compared to the third quarter of 2007. BearingPoint's shareholders' deficit was $469.2 million as of the close of the third quarter 2008. [12]

BearingPoint had difficulties with several major clients, including an outsourcing arrangement with Hawaiian Telcom. [13] On 7 February 2007, BearingPoint announced that it had reached a settlement with Hawaiian Telcom due to issues with an IT system contract, paying the Hawaii telco $52 million and erasing an additional $30 million in previously submitted invoices. In exchange, Hawaiian Telcom released BearingPoint from any further liability. A day later, Hawaiian Telcom announced that it had signed a contract with Accenture to take over BearingPoint's role in their systems development. [14]

On 10 December 2008, BearingPoint filed a Certificate of Amendment to the Certificate of Incorporation of the company with the Secretary of State of the State of Delaware to effect a previously approved reverse stock split of the company's outstanding common stock, par value $0.01 per share, at a ratio of one-for-fifty. The reverse stock split became effective at 6:01 p.m., Eastern Time, on 10 December 2008, at which time every fifty shares of Common Stock that were issued and outstanding automatically combined into one issued and outstanding share of Common Stock. On 13 November 2008, BearingPoint received notice from NYSE Regulation, Inc. (NYSE) that the NYSE had decided to suspend BearingPoint's common stock from trading prior to the market opening on 17 November 2008. [15]

The company filed for Chapter 11 in the U.S. Bankruptcy Court in the Southern District of New York on 18 February 2009, with $2.23 billion in total debt and $1.76 billion in total assets as of 30 September. The filing included only the company's U.S. operations. Unable to sustain the heavy debt load resulting from ill-advised expansion moves, costly management errors and audit fees associated with the bankruptcy process, the company negotiated debt for equity swaps with its creditors and zeroed the value of its common shares, wiping out existing investors.

By May 2009, the company's Japan business unit and North American Commercial Services practice had been sold to PwC [16] and its North American Public Services practice had been sold to Deloitte. [17] Its Brazil unit was sold to CSC in July 2009 [18] and its China unit was sold to Perot Systems in October of the same year. [19]

August 2009 to present

On 28 August 2009, control of BearingPoint was transferred to its European management team, with continuing operations owned by about 150 partners in 21 countries throughout Europe. Peter Mockler, who had been serving as the EMEA leader for BearingPoint since 2006, and his management team continued to lead the organisation, providing leadership stability and continuity. Employing 3,709 people in the European region, the independent company kept the BearingPoint brand. [20]

In Australia, BearingPoint completed a local management buy-out in September 2009. The China-based information technology company HiSoft acquired BearingPoint Australia for an undisclosed sum in July 2012. [21]

The European BearingPoint partnership has grown its revenues since becoming independent, from €441 million in 2009 to €781 million (2019). [2] It now has offices in 19 European countries, outside EMEA the firm has offices in Asia and the US, as part of its strategy of expanding its reach across the G-20 countries and globally. To this end, BearingPoint also formed strategic alliances with West Monroe Partners in North America, Grupo ASSA in South America and ABeam in Asia. [22]

Related Research Articles

Arthur Andersen LLP was an American accounting firm based in Chicago that provided auditing, tax advising, consulting and other professional services to large corporations. By 2001, it had become one of the world's largest multinational corporations and was one of the "Big Five" accounting firms. The firm collapsed by mid-2002, as details of its questionable accounting practices for energy company Enron and telecommunications company WorldCom were revealed amid the two high-profile bankruptcies. The scandals were a factor in the enactment of the Sarbanes–Oxley Act of 2002.

<span class="mw-page-title-main">KPMG</span> Multinational professional services and accounting company firm

KPMG International Limited is a multinational professional services network, and one of the Big Four accounting organizations, along with Ernst & Young (EY), Deloitte, and PwC. The name "KPMG" stands for "Klynveld Peat Marwick Goerdeler". The initialism was chosen when KMG merged with Peat Marwick in 1987.

<span class="mw-page-title-main">DynCorp</span> Defunct American corporation

DynCorp, formally DynCorp International, was an American private military contractor. Started as an aviation company, the company also provided flight operations support, training and mentoring, international development, intelligence training and support, contingency operations, security, and operations and maintenance of land vehicles. DynCorp received more than 96% of its more than $3 billion in annual revenue from the U.S. federal government. The corporate headquarters were in an unincorporated part of Fairfax County near Falls Church, Virginia, while the company's contracts were managed from its office at Alliance Airport in Fort Worth, Texas. DynCorp provided services for the U.S. military in several theaters, including Bolivia, Bosnia, Somalia, Angola, Haiti, Colombia, Kosovo and Kuwait. It also provided much of the security for Afghan president Hamid Karzai's presidential guard and trained much of the police forces of Iraq and Afghanistan. DynCorp was also hired to assist recovery in Louisiana and neighboring areas after Hurricane Katrina. The company held one contract on every round of competition since receiving the first Contract Field Teams contract in 1951.

<span class="mw-page-title-main">KBR (company)</span> American engineering, procurement and construction company

KBR, Inc. is a U.S. based company operating in fields of science, technology and engineering.

Deloitte Touche Tohmatsu Limited, commonly referred to as Deloitte, is a British multinational professional services network. Deloitte is the largest professional services network by revenue and number of employees in the world and is considered one of the Big Four accounting firms along with EY, KPMG and PwC.

<span class="mw-page-title-main">Lehman Brothers</span> Defunct American financial services firm

Lehman Brothers Inc. was an American global financial services firm founded in 1850. Before filing for bankruptcy in 2008, Lehman was the fourth-largest investment bank in the United States, with about 25,000 employees worldwide. It was doing business in investment banking, equity, fixed-income and derivatives sales and trading, research, investment management, private equity, and private banking. Lehman was operational for 158 years from its founding in 1850 until 2008.

<span class="mw-page-title-main">Computer Sciences Corporation</span> Defunct American corporation that provided information technology services

Computer Sciences Corporation (CSC) was an American multinational corporation that provided information technology (IT) services and professional services. On April 3, 2017, it merged with the Enterprise Services line of business of HP Enterprise to create DXC Technology.

Hawaiian Telcom, Inc., is the incumbent local exchange carrier (ILEC) or dominant local telephone company, serving the state of Hawaii. In 2005, Hawaiian Telcom Holdco, Inc., was formed by The Carlyle Group, following its purchase of the Hawaiian Telcom Inc. assets of Verizon Communications. On July 2, 2018, Cincinnati Bell purchased Hawaiian Telcom Holdco, Inc. for $650 Million,

New Century Financial Corporation was a real estate investment trust that originated mortgage loans in the United States through its operating subsidiaries, New Century Mortgage Corporation and Home123 Corporation.

Suntech Power Holdings Co., Ltd. is a Chinese producer of solar panels, with 2,000 MW (2,700,000 hp) of annual production capacity by the end of 2011. It is headquartered in Wuxi, Jiangsu. Shunfeng International Clean Energy Limited, a HKSE listed renewable energy investment and Independent Power Producer company, acquired Suntech in 2014 following Suntech's bankruptcy in 2013. With offices or production facilities in every major market, Suntech has delivered more than 13,000,000 solar panels to thousands of companies in more than 80 countries around the world. As the center for the company's global operations, Suntech headquarters, in Wuxi, China, features the world's largest building integrated solar facade.

<span class="mw-page-title-main">AECOM</span> American engineering firm

AECOM is a multinational infrastructure consulting firm.

<span class="mw-page-title-main">Seadrill</span>

Seadrill is an offshore drilling contractor providing worldwide offshore drilling services to the oil and gas industry. Its primary business is the ownership and operation of drillships, semi-submersible rigs, and jack-up rigs for operations in shallow to ultra-deep water in both benign and harsh environments. It provides a contract-based service and primarily serves the oil super-majors, integrated oil and gas, state-owned national oil, and independent oil and gas companies.

<span class="mw-page-title-main">FairPoint Communications</span> Defunct American telecommunications company

FairPoint Communications, Inc. was an American operator of communication services. FairPoint's services include local and long-distance phone service, data, Internet, broadband, television, business communications solutions and fiber services. Headquartered in Charlotte, North Carolina, it served 31 markets in 17 states, mostly in rural areas. FairPoint, along with Frontier Communications, had been at the forefront of acquiring Verizon landline operations.

<span class="mw-page-title-main">MPC Corporation</span> American computer hardware company

MPC Corporation was a computer-hardware company based in Nampa, Idaho, United States. It was best known as a provider of desktops, notebooks, servers and services to customers in the federal, state and local government, education, small and medium business, and consumer markets. Before June 2001, MPC Corporation was known as Micron Electronics Inc., a subsidiary of Boise-based semiconductor manufacturer Micron Technology.

Mercer is an American consulting firm founded in 1945. It is one of the four operating subsidiaries of global professional services firm Marsh McLennan. Mercer is headquartered in New York City with offices in 43 countries and operations in 130 countries. The company primarily provides human resources and financial services consulting services to its clients.

Jerry W. Levin is an American businessman.

<span class="mw-page-title-main">Hill International</span> American construction consulting firm

Hill International, Inc. is an American construction consulting firm. Founded in 1976, the company's corporate headquarters are in Philadelphia, Pennsylvania, U.S. Hill provides program and project management, construction management, cost engineering and estimating, quality assurance, inspection, scheduling, risk management, and claims resolution and avoidance services to clients with major construction projects worldwide.

CHS Electronics is a former multinational distributor of microcomputer products, personal computers, peripherals, networking products, and software.

<span class="mw-page-title-main">Van der Moolen</span> Dutch equity trading firm

Van der Moolen was a Dutch equity trading firm, with its headquarters located in Amsterdam. They were mainly active in the United States and in Europe, particularly in the Netherlands, France, Germany, Switzerland and the United Kingdom. Van der Moolen, which at its peak was one of the largest registered marketmakers on the New York Stock Exchange, filed for bankruptcy in September 2009 after mounting losses.

Globant is an IT and software development company operating in Argentina, Colombia, Uruguay, the United Kingdom, Brazil, the United States, Canada, Peru, India, Mexico, Chile, Costa Rica, Ecuador, Spain, France, Germany, Romania, Belarus and Italy. It was formed in 2003 by Martín Migoya, Guibert Englebienne, Martín Umaran and Néstor Nocetti. It was founded in Buenos Aires, but is currently headquartered in Luxembourg, and principally serves clients in the United States and United Kingdom.

References

  1. ↑ "Corporations name change". Archived from the original on 17 July 2011. Retrieved 7 August 2011.
  2. 1 2 3 4 "Annual Report 2020: Protect.Adapt.Accelerate". BearingPoint. Retrieved 5 August 2021.
  3. ↑ "Company Overview of BearingPoint Europe Holdings B.V." Bloomberg Businessweek. Retrieved 24 October 2012.
  4. ↑ "BearingPoint files for bankruptcy protection". Forbes. 18 February 2009. Archived from the original on December 27, 2010.
  5. ↑ Newswires, Peter LoftusDow Jones (July 25, 2003). "BearingPoint Gets Contract To Help Rebuild Iraq Economy" – via www.wsj.com.
  6. ↑ "BearingPoint Wins $9 Million Iraq Contract". InformationWeek.
  7. ↑ Robert Looney, "The Neoliberal Model's Planned Role in Iraq's Economic Transition", Middle East Journal, Vol. 57, No. 4 (Autumn 2003), pp. 568-586.
  8. ↑ "Shock and oil: Iraq's billions & the White House connection". The Independent. January 14, 2007.
  9. ↑ "BearingPoint financial report". Forbes .[ dead link ]
  10. ↑ "Quarterly report pursuant to section 13 or 15(d) of the securities exchange act of 1934" (PDF). U.S. Securities and Exchange Commission. 30 June 2007.
  11. ↑ [ permanent dead link ]
  12. ↑ "IR Services | Morningstar U.S". Archived from the original on 2012-07-09. Retrieved 2016-02-07.
  13. ↑ Hawaiian Telcom at odds with biller | The Honolulu Advertiser | Hawaii's Newspaper. The Honolulu Advertiser (2006-11-08). Retrieved on 2013-07-19.
  14. ↑ "starbulletin.com | Business | /2007/02/09/". archives.starbulletin.com.
  15. ↑ "Yahoo Finance - Stock Market Live, Quotes, Business & Finance News". finance.yahoo.com.
  16. ↑ プライスウォーターハウスクーパース株式会社. Pwcadvisory.co.jp. Retrieved on 2013-07-19.
  17. ↑ Darcy, Darlene (May 8, 2009). "Deloitte closes BearingPoint purchase".
  18. ↑ Csc Enters Into Agreement To Acquire Bearingpoint Operation In Brazil. Csc.com. Retrieved on 2013-07-19.
  19. ↑ "Ross Perot". www.rossperot.com. Archived from the original on December 18, 2009.
  20. ↑ BearingPoint - Business Consulting firm Archived 2011-02-07 at the Wayback Machine . Bearingpointconsulting.com. Retrieved on 2013-07-19.
  21. ↑ "BearingPoint buyout gives HiSoft a toehold". The Australian. 25 September 2012. Retrieved 23 October 2012.
  22. ↑ "BearingPoint's leaders on the firm's growth and ambitions". Consultancy Europe. 20 May 2019. Retrieved 17 September 2019.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.