AlixPartners

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AlixPartners LLP
Partnership
IndustryManagement consulting
Founded1981; 39 years ago (1981)
FounderJay Alix
HeadquartersNew York City, New York, U.S.
Area served
Global
Key people
Simon Freakley (CEO)[1]
Number of employees
2000+
WebsiteAlixPartners.com

AlixPartners sometimes referred to as Alix Partners is an American consulting firm best known for its work in the turnaround space.[2] Jay Alix founded what became AlixPartners LLP in 1981. The firm has advised on some of the largest Chapter 11 reorganizations including General Motors Co., Kmart, and Enron Corp.[3] The firm has since moved into a more traditional consulting space, grown to a staff of over 1000.[4] AlixPartners is headquartered in New York, and has offices in more than 20 cities around the world.[5]

AlixPartners competes in the traditional consulting space with firms including McKinsey & Company, the Boston Consulting Group, and Bain & Company, they also compete with turnaround specialty firms such as FTI Consulting, Alvarez and Marsal, Berkeley Research Group, Capstone Advisory Group, and Hilco Global.[6][citation needed]

In 2006, private equity firm Hellman & Friedman invested in AlixPartners.[7] In 2012, CVC Capital Partners acquired AlixPartners from Hellman & Friedman.[8] In 2016, AlixPartners was valued at $2.5 billion.[9]

Founding[edit]

AlixPartners was founded in 1981 in Southfield, Michigan by Jay Alix, a Detroit-area Certified Public Accountant (CPA). The company was founded as Jay Alix & Associates PC. According to BusinessWeek, the “firm pioneered consulting to companies in or near bankruptcy.” It first found public recognition in 1984, when working with the bankrupt automotive company DeLorean Motor Co, finding an additional $100 million for the company’s creditors.

Business Structure[edit]

AlixPartners' work includes enterprise improvement consulting, financial advisory services, information management services, and executing turnarounds of distressed and healthy companies. AlixPartners has been involved in several high-profile turnaround and bankruptcy assignments including GM's Saab division,[10] Kodak,[11] Barney's New York,[12] and JC Penney.[13] The firm's managing directors are frequently cited as topic experts in business publications such as Bloomberg, the Financial Times, CNBC, and Fox Business.

In December 2014 the firm purchased Evidence Exchange, a litigation support company.[14]

In February 2015, AlixPartners purchased Zolfo Cooper's UK & European operations for $100 million.[15] In November 2018, the firm completed the acquisition of independent financial advisory and interim management firm Zolfo Cooper, thereby increasing the turnaround and restructuring group to nearly 350 employees worldwide.[16]

In 2006, private equity firm Hellman & Friedman invested in AlixPartners. In 2012, CVC Capital Partners acquired AlixPartners from Hellman & Friedman[17]. In 2015, AlixPartners UK managing director and former Zolfo Cooper Europe CEO Simon Freakley was named as CEO Fred Crawford’s successor in August 2015, taking the job on January 1, 2016.[18] After 4 years, CVC Capital Partners agreed to sell its stake in AlixPartners to company founder Jay Alix as well as Caisse de dépôt et placement du Québec, Public Sector Pension Investment Board, and Investcorp.[19]

Consulting and M&A Work[edit]

The company has built a mergers and acquisitions practice, in addition to other forms of business consulting. Specifically, they work within large merger integration situations. In March 2014 AlixPartners was brought on board to advise on the merger between JoS. A. Bank Clothiers and Men's Warehouse, two male clothing retailers.[20] AlixPartners has consulted for companies including Airbus, Crocs, and William Morris Endeavor. Once hired by William Morris, AlixPartners was responsible for finding $120 million in cost cutting measures for IMG before the two agencies merged.[21]

Industries in which AlixPartners consults includes maritime and transportation[22], private equity[23], automotive[24], energy and process or oil and gas industries[25], and aerospace. In September 2014, AlixPartners began the restructuring of the Puerto Rico Electric Power Authority (PREPA). The deal allowed PREPA to access a $280 million construction fund for infrastructure improvements for the country.[26]

In 2003, AlixPartners began working heavily in the automotive industry. Jay Alix himself worked with the Government of Japan in order to establish a business turnaround industry in Japan and business turnaround association.[27]

Companies have also brought on AlixPartners during healthy financial periods in an attempt to boost company performance as well.[28]

In 2015, the company started its Leadership & Organizational Effectiveness practice, which provides “leadership assessment and selection [and] propositions aimed at transforming cultures, implementing talent management strategies, organizational design, M&A culture integration and change management.”[29]

Lawsuits[edit]

In 2014, AlixPartners accused several executives exiting the firm to join the Restructuring and Transformation Service (RTS) at McKinsey & Company of stealing trade secrets.[30]

In 2018, AlixPartners founder Jay Alix brought a lawsuit against McKinsey & Company, accusing the management consulting firm of misleading the bankruptcy courts about conflicts of interest.[31]

Awards[edit]

The firm has received many awards and recognition for their work in the consulting space, including four of its consultants being selected as winners by the Turnaround Management Association (TMA) for its prestigious “Turnaround and Transaction of the Year” awards.[32] AlixPartners ranked #1 in the category “Transformation & Restructuring” in the renowned German management consulting ranking by Dr. Dietmar Fink, Top Management Consultancies 2018 and ranked #1 in the category “Turnaround & Restructuring” in the Swiss "Management Consulting 2019" of Gesellschaft für Management und Beratung (WGMB).

AlixPartners has also been recognized as a “Best Firm to Work For” by Consulting magazine[33], and one of the Best Management Consulting Firms in 2018 by Forbes[34]. In addition to those awards, AlixPartners earned a score of 100% in the 2018 Corporate Equality Index by the Human Rights Campaign Foundation, ranking AlixPartners among HRC’s “Best Places to Work for LGBTQ Equality."[35]

References[edit]

  1. ^ http://www.consultancy.uk/news/2431/simon-freakley-new-chief-executive-of-alixpartners
  2. ^ Merx, Katie. "Thinking Big Thoughts." Crain's Detroit Business 19.36 (2003): 18. Regional Business News. Web. 29 May 2013.
  3. ^ "When the Going Gets Tough, Turnaround Specialist Jay Alix Gets Busy". 2002-09-23. Retrieved 2019-06-21.
  4. ^ Henderson, Tom. "Alixpartners Deal Gives Equity To Firm's Managers." Crain's Detroit Business 22.32 (2006): 1. Regional Business News. Web. 29 May 2013.
  5. ^ tyost00000, Community Contributor. "Chicago-based John Loehr joins AlixPartners as a managing director in automoitve and industrial". chicagotribune.com. Retrieved 2019-06-21.
  6. ^ http://www.hoovers.com/company-information/cs/company-profile.Hilco_Trading_LLC.139018ea27511665.html
  7. ^ Turnaround Firm AlixPartners Is Sold
  8. ^ M&A: July 2, 2012
  9. ^ Vemuri, Chitra (2016-11-07). "CVC Sells Stake in AlixPartners to CDPQ, PSP and Investcorp". Wall Street Journal. ISSN 0099-9660. Retrieved 2019-06-21.
  10. ^ New York Times, "G.M. Hires AlixPartners to Wind Down Saab", Jan. 8, 2009, http://dealbook.nytimes.com/2010/01/08/gm-hires-alixpartners-to-wind-down-saab/
  11. ^ New York Times, "Kodak Replaces Its Restructuring Chief", Jan 23, 2012, http://dealbook.nytimes.com/2012/01/23/kodak-replaces-its-restructuring-chief/
  12. ^ New York Times, "Barneys, Debt-Laden, Is Weighing Restructuring", Feb 8, 2012, http://dealbook.nytimes.com/2012/02/08/barneys-debt-laden-is-weighing-restructuring/
  13. ^ Penney Works With AlixPartners on Cost Savings, Wall Street Journal, April 23, 2013
  14. ^ "AlixPartners buys New York-based Evidence Exchange". www.consultancy.uk. Retrieved 2019-06-21.
  15. ^ "Alix Partners to acquire Zolfo Cooper's UK & European operatons". Accountancy Age. 2015-02-16. Retrieved 2019-06-21.
  16. ^ "AlixPartners Completes Acquisition of Zolfo Cooper - News | ABL Advisor". www.abladvisor.com. Retrieved 2019-06-21.
  17. ^ Merced, Michael J. de la (2012-06-24). "CVC Capital Clinches AlixPartners Deal". DealBook. Retrieved 2019-06-21.
  18. ^ Pollock, Lauren. "AlixPartners Names Simon Freakley as Next CEO". WSJ. Retrieved 2019-06-21.
  19. ^ Vemuri, Chitra (2016-11-07). "CVC Sells Stake in AlixPartners to CDPQ, PSP and Investcorp". Wall Street Journal. ISSN 0099-9660. Retrieved 2019-06-21.
  20. ^ "Men's Wearhouse engages AlixPartners to support Jos. A. Bank merger". Chain Store Age. 2014-03-31. Retrieved 2019-06-21.
  21. ^ Dai, Shasha (2014-03-17). "William Morris Endeavor Hires Adviser to Cut Costs at IMG". Wall Street Journal. ISSN 0099-9660. Retrieved 2019-06-21.
  22. ^ "Trump Tariffs: Top 100 US Importers and Exporters - Tariffs, trucking pose biggest threats to US importers and exporters". www.joc.com. Retrieved 2019-06-21.
  23. ^ "AlixPartners hires MD for PE and investors practice". PE Hub. 2018-11-05. Retrieved 2019-06-21.
  24. ^ "This Is What Peak Car Looks Like". 2019-02-28. Retrieved 2019-06-21.
  25. ^ "Energy-Industry Expert Joins AlixPartners as a Managing Director - News | ABL Advisor". www.abladvisor.com. Retrieved 2019-06-21.
  26. ^ Kuriloff, Aaron (2014-09-04). "AlixPartners Will Lead Puerto Rico Power Authority's Restructuring". Wall Street Journal. ISSN 0099-9660. Retrieved 2019-06-21.
  27. ^ Otake, Tomoko (2003-05-01). "Flailing Japanese companies, government turn to U.S. recovery 'guru'". The Japan Times Online. ISSN 0447-5763. Retrieved 2019-06-21.
  28. ^ "When the Going Gets Tough, Turnaround Specialist Jay Alix Gets Busy". 2002-09-23. Retrieved 2019-06-21.
  29. ^ "AlixPartners expands human capital advisory offering". www.consultancy.uk. Retrieved 2019-06-21.
  30. ^ Jones, Ashby (2014-04-10). "AlixPartners Accuses Directors Heading to McKinsey of Trade-Secret Theft". WSJ. Retrieved 2019-06-21.
  31. ^ Walsh, Mary Williams (2019-04-11). "One Man vs. McKinsey: A Billionaire Says the Consultancy Has Rigged the Bankruptcy System". The New York Times. ISSN 0362-4331. Retrieved 2019-06-21.
  32. ^ "AlixPartners Pros Honored with TMA "Turnaround of the Year" Awards - News | ABL Advisor". www.abladvisor.com. Retrieved 2019-06-21.
  33. ^ "The 2018 Best Firms to Work For: AlixPartners". Consultingmag.com. Retrieved 2019-06-21.
  34. ^ "America's Best Management Consulting Firms". Forbes. Retrieved 2019-06-21.
  35. ^ Campaign, Human Rights. "CEI: 2018 Statements from Employers That Rated 100 Percent". Human Rights Campaign. Retrieved 2019-06-21.

External links[edit]