FTI Pays $125M for Real Estate Consulting Firm

NEW YORK CITY-FTI Consulting Inc. has signed a definitive agreement to acquire the Schonbraun McCann Group in a transaction valued at approximately $125 million, of which approximately $100 million is in cash and approximately $25 million is in restricted FTI stock. In addition, there will be the opportunity for additional consideration if earnings exceed certain targets over the next five years.

According to a prepared statement, locally based SMG has a high percentage of recurring revenue from major real estate clients. In recent years, the company has advised on transactions including: SL Green on its $6 billion acquisition of Reckson Associates Realty Corp.; Beacon Capital Partners on its $6.4 billion acquisition of office properties in Seattle and Washington, DC; Broadway Partners on its $4.7 billion acquisition of 14 office properties; Gale International on its $30 billion master development of Songdo City, South Korea; Mack-Cali on its $600 million acquisition of the Bellemeade portfolio; and many recent REIT IPOs including Douglas Emmett, Northstar Realty, and Gramercy Capital.

SMG managing partner Bruce Schonbraun will join FTI as a senior managing director and group leader of its Real Estate Practice. In addition, SMG brings 170 professionals to FTI, 11 of whom will become senior managing directors. SMG will operate and function as the Real Estate Division of FTI within the company’s Corporate Finance Sector.