Frost & Sullivan

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Frost & Sullivan
Private
IndustryMarket research, Consulting
Founded1961; 58 years ago (1961)
FounderDan L. Sullivan & Lore A. Frost
Headquarters,
United States
Key people
David Frigstad (Chairman)
Krishna Srinivasan (President)[1]
ServicesManagement consulting (growth strategy) and market research
RevenueUSD 0.22 billion
Number of employees
1800
Websitewww.frost.com store.frost.com

Frost & Sullivan is a business consulting firm involved in market research and analysis, growth strategy consulting, and corporate training across multiple industries. It is headquartered in Mountain View, California, and has 40 offices on six continents.[2][non-primary source needed]

History[edit]

Frost & Sullivan was founded by Dan L. Sullivan and Lore A. Frost[3][4] in New York City in 1961.[5] The company initially focused on research related to new technologies, distribution channels and business trends. In 1972, it started a corporate training division. Also in the 1970s, the company started sponsoring conferences and industry meets, and also expanded outside the US in the 1970s by opening an office in London.[5]

In 1982, Frost & Sullivan was publicly traded, and had annual revenues of $9.1 million. By 1987, the revenues had grown to around $17.5 million, with $290,000 in net earnings. Theodore Cross acquired 53% of the company's stock in the mid-1980s.[5] In January 1988, the company was merged with a subsidiary of FAS Acquisition Co., a company formed by Theodore Cross and Warburg Pincus Capital, making it a private firm once again.[6] In 1993, the company was acquired by David Frigstad.

The company expanded into Asia in the 1990s and opened offices in China, Japan, India and Singapore. In 1997, it entered into a joint venture with M.A.I.D. (later acquired by Dialog) for electronic distribution of its material.

In 2001, it acquired Technical Insights. The same year, Frost & Sullivan lost its New York sales office in the September 11 attacks.[7] The following recession forced the company to lay off 10% of its 700-strong staff, before it made a recovery.[5] In 2002, it further expanded its alliance with Dialog.[8]

Conflicts of interest[edit]

Frost & Sullivan participates in an equity research service scheme. The scheme provides equity research for a company who funds the research. The researched company is permitted to correct the report before the report is published.[9] Frost & Sullivan published a paper about the benefits of the scheme in the European Scientific Journal,[10] a predatory journal.[11] Researchers and asset managers see an inherent conflict of interest in research sponsored by the company being researched.[12]

Frost & Sullivan issues industry awards based on research using their proprietary methodology.[13] Organizations which receive a Frost & Sullivan award must pay a fee to communicate the outcome to the public. This conflict of interest is similar to that of a vanity award.[citation needed]

References[edit]

  1. ^ "Frost & Sullivan, Inc". Bloomberg Businessweek. Retrieved 2011-11-17.
  2. ^ "Our Offices". Frost & Sullivan. Frost & Sullivan. Retrieved 14 September 2016.
  3. ^ "Rest in Peace Fellow Yalie". Yale Club of Nevada. Retrieved 18 September 2018.
  4. ^ Frost & Sullivan - Starting - Lore A. Frost, Founder on YouTube VQIR.com 14 April, 2017
  5. ^ a b c d Thomas Derdak; Tina Grant, eds. (2003). International Directory of Company Histories. 53. St. James Press. p. 142–146. ISBN 978-1-55862-483-2.
  6. ^ "Company Briefs". The New York Times. 1987-11-23. Retrieved 2011-11-17.
  7. ^ "Frost & Sullivan lost office in NYC attack". San Antonio Business Journal. 2001-09-17. Retrieved 2011-11-17.
  8. ^ "Dialog Expands Alliance with Frost & Sullivan". Information Today. 2002-05-01. Retrieved 2011-11-17.
  9. ^ Equity Research Service SchemeGeneral Terms and Conditions (PDF), Tel Aviv Stock Exchange, archived from the original (PDF) on December 10, 2019
  10. ^ Tiran Rothman (March 2019), The Equity Research Program’s Effect on Technology Investors: The Tel-Aviv Stock Exchange Case Study, doi:10.19044/esj.2019.v15n7p121
  11. ^ Stefan Eriksson (May 2, 2018), Where to publish and not to publish in bioethics – the 2018 list, archived from the original on July 31, 2019
  12. ^ Justina Lee (September 28, 2018), This Stock Research Is Paid For By the Company. Do You Trust It?, Bloomberg, archived from the original on September 29, 2018
  13. ^ "Best practices recognition: research methodology". Frost & Sullivan. Retrieved February 14, 2017.