Financially troubled consulting and tax services firm LECG revealed Friday it has received an acquisition offer for at least part of its business from FTI Consulting that could help rescue the firm from its financial straits.

LECG had disclosed earlier this month that it had received a non-binding indication of interest from an unidentified company with a view toward entering into a definitive acquisition transaction for the entire firm. However, at the time LECG did not announce that its suitor was FTI.

On Friday, LECG disclosed that FTI Consulting was the party that had indicated interest in a possible acquisition. LECG added that the negotiations are now focused on the possible acquisition of several specific practice groups within LECG and not an acquisition of the entire firm. LECG said it believes this alternative, whether with the identified party or one or more other parties, may be the most viable path for the company to raise capital to address current liquidity concerns.

The firm has been experiencing a cash crunch that could put added pressure on LECG to push for a deal with FTI. LECG said it is pursuing discussions with FTI, but along with its advisor William Blair & Company and counsel, is also analyzing other restructuring possibilities.

LECG said it continues to work closely with its current lenders. Its term credit facility matures on March 31, 2011 and approximately $27.8 million in principal is outstanding under the facility. Absent a strategic transaction, or other financing alternative, LECG said it would not have sufficient cash resources to repay amounts outstanding under the facility.

LECG added that there is no assurance that it will enter into a binding acquisition agreement with any party or that the terms of such an agreement would meet the company's current expectations. If it is not able to enter into a binding acquisition agreement to sell certain of its practice groups for sufficient funds, it would need to consider other restructuring and debt resolution alternatives, including a possible liquidation. LECG said it does not intend to make any further public disclosures concerning any transaction until a binding acquisition agreement is signed or another material decision is made by its board of directors.

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