Frost & Sullivan

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]

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 a proprietary methodology, which is sometimes based on a single article produced by the receiver of the award. Organizations which receive a Frost & Sullivan award must pay a fee to communicate the outcome to the public.[13][14][15][16] This conflict of interest is similar to that of a vanity award.