Chicago (Sept. 21, 2004) -- KPMG LLP has sold its U.S. Corporate Recovery practice to privately held Mesirow Financial, a financial services firm based here.

Terms of the transaction were not disclosed.

"This transaction reflects KPMG's deliberate decision to get ahead of the growing impact of regulatory reforms on our ability to provide corporate restructuring services," said Jack Taylor, KPMG vice chair of Audit and Risk Advisory Services - Operations. "This combination is a strong strategic fit that aligns an industry-leading client service team with an organization that is relatively free of regulatory constraints."

Mesirow said that the transaction will allow the division to expand its services beyond corporate recovery to include turnaround consulting and crisis management, litigation support, valuation services, operational consulting and other advisory services.

The unit of more than 100 corporate recovery professionals, now called Mesirow Financial Consulting, will be managed by former KPMG partner Ralph S. Tuliano, who becomes president of Mesirow Financial Consulting and will be appointed to Mesirow Financial's executive committee.

"The addition of corporate recovery services, the latest in a series of strategic acquisitions, is a natural progression for Mesirow Financial. It enables us to once again expand the depth and breadth of services we provide to our corporate clients," said James C. Tyree, Mesirow chairman and chief executive officer.

Mesirow Financial Consulting will operate from offices in Chicago, New York, Dallas, Los Angeles, San Francisco, Phoenix, Boston, Miami and Charlotte, N.C., serving corporate entities, unsecured creditors and secured lenders.

Mesirow, which offers investment management, investment services, insurance services, investment banking and real estate, reported revenue for the year ended March 31 of $267 million and more than $20 billion in assets under management, custody and advisory. The acquisition gives it more than 1,000 employees in 17 offices.

-- WebCPA staff

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