1289848--2/22/2007--Huron_Consulting_Group

related topics

{customer, product, revenue}

{personnel, key, retain}

{interest, director, officer}

{cost, operation, labor}

{cost, contract, operation}

{competitive, industry, competition}

{control, financial, internal}

{property, intellectual, protect}

{debt, indebtedness, cash}

{acquisition, growth, future}

{financial, litigation, operation}

{product, market, service}

An inability to retain our senior management team and other managing directors would be detrimental to the success of our business. Our inability to hire and retain talented people in an industry where there is great competition for talent could have a serious negative effect on our prospects and results of operations. We have experienced net losses for the first part of our history, and our limited operating history makes evaluating our business difficult. If we are unable to manage the growth of our business successfully, we may not be able to sustain profitability. Our financial results could suffer if we are unable to achieve or maintain adequate utilization and suitable billing rates for our revenue-generating professionals. A significant portion of our revenues is derived from a limited number of clients, and our engagement agreements, including those related to our largest clients, can be terminated by our clients with little or no notice and without penalty, which may cause our operating results to be unpredictable. Our ability to maintain and attract new business depends upon our reputation, the professional reputation of our revenue-generating employees and the quality of our services. The consulting services industry is highly competitive, and we may not be able to compete effectively. Additional hiring and acquisitions could disrupt our operations, increase our costs or otherwise harm our business. If the number of large bankruptcies declines or other factors cause a decrease in demand for our corporate advisory services, our revenues and profitability could suffer. The profitability of our fixed-fee engagements with clients may not meet our expectations if we underestimate the cost of these engagements. Revenues from our performance-based engagements are difficult to predict, and the timing and extent of recovery of our costs is uncertain. Conflicts of interest could preclude us from accepting engagements thereby causing decreased utilization and revenues. Expanding our service offerings or number of offices may not be profitable. Our engagements could result in professional liability, which could be very costly and hurt our reputation. Our intellectual property rights in our Huron Consulting Group name are important, and any inability to use that name could negatively impact our ability to build brand identity. We or some of our professionals could be named in lawsuits because we were founded by former Arthur Andersen LLP partners and professionals and contracted with Arthur Andersen for releases from non-competition agreements. As a holding company, we are totally dependent on distributions from our operating subsidiaries to pay dividends or other obligations and there may also be other restrictions on our ability to pay dividends in the future.

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1289848--2/22/2007--Huron_Consulting_Group_Inc.