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AlixPartners

Summary

AlixPartners is a financial advisory and global consulting firm best known for its work in the turnaround space.[2][3][4] 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.[5] The firm has since moved into a more traditional consulting space, and grown to a staff of over 1000.[6] AlixPartners is headquartered in New York, and has offices in more than 20 cities around the world.[7] They were also involved in the Bernie Madoff scandal, identifying 13,000 investors affected by the scandal for the prosecuting team.[8]

AlixPartners LLP
Company typePartnership
IndustryManagement consulting
Founded1981; 43 years ago (1981)
FounderJay Alix
HeadquartersNew York City, New York, U.S.
Area served
Global
Key people
Simon Freakley (CEO)[1]
Number of employees
2500+
WebsiteAlixPartners.com

In 2006, private equity firm Hellman & Friedman invested in AlixPartners.[9] In 2012, CVC Capital Partners acquired AlixPartners from Hellman & Friedman.[10] In 2016, AlixPartners was valued at $2.5 billion.[11]

Founding edit

AlixPartners was founded in 1981 as Jay Alix & Associates PC in Southfield, Michigan, by Jay Alix, a Detroit-area Certified Public Accountant (CPA). 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,[12] Kodak,[13] Barney's New York,[14] and JC Penney.[15]

In 2006, private equity firm Hellman & Friedman invested in AlixPartners. In 2012, CVC Capital Partners acquired AlixPartners from Hellman & Friedman.[16]

In December 2014 the firm purchased Evidence Exchange, a litigation support company.[17]

In February 2015, AlixPartners purchased Zolfo Cooper's UK & European operations for $100 million.[18] 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.[19]

In January 2016, AlixPartners UK managing director and former Zolfo Cooper Europe CEO Simon Freakley succeeded Fred Crawford as the company's CEO.[20] That year, 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.[11]

AlixPartners acquired Matrix Economics and Freeh Group (led by former FBI director Louis Freeh) for their investigations and compliance practices in 2020.[21][22] In November 2021, AlixPartners announced a partnership with Palantir for shared clients to utilize Palantir's Foundry analytics platform.[23] In February 2023, AlixPartners announced the acquisition of London-based advisory firm THM Partners.[24]

Consulting and M&A work edit

The company has built a mergers and acquisitions practice, working within large merger integration situations. Industries in which AlixPartners consults includes maritime and transportation,[25] private equity,[26] automotive,[27] energy and process or oil and gas industries,[28] and aerospace. In March 2014, AlixPartners advised on the merger between JoS. A. Bank Clothiers and Men's Warehouse, two male clothing retailers.[29] 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.[30]

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.[31]

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.[32]

In 2015, the company started its Leadership & Organizational Effectiveness practice.[33]

AlixPartners helped Ukrainian bank PrivatBank recover over $5 billion in assets allegedly stolen by former shareholders in 2016.[34] In response, former co-founder Ihor Kolomoyskyi filed a 2017 lawsuit against AlixPartners.[35] The company also worked alongside Quinn Emanuel Urquhart & Sullivan and Niederer Kraft Frey in a case against Julius Baer, providing forensic services for an investigation into potential anti-money laundering and US sanctions violations.[36]

AlixPartners has advised numerous companies affected by the COVID-19 pandemic on debt management and restructuring, including Arabtec Holding, Cineworld, and JCPenney.[37][38]

Lawsuits edit

In 1990, Jack Sanders (great-grandson of Fred Sanders) and former co-owner Filipp Kreissel, filed a $6 million lawsuit against AlixPartners and a lender. The suit was dismissed by the judge during the first day of oral arguments in August 1990, who found the suit lacked merit.[2]

In 2014, AlixPartners accused several executives exiting the firm to join McKinsey & Company of stealing trade secrets.[39]

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.[40] As of August 2023, McKinsey had lost its bid to end the racketeering litigation brought by Jay Alix.[41]

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.[42] AlixPartners ranked #1 in the category "Transformation & Restructuring" in the renowned German management consulting ranking by 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,[43] and one of the Best Management Consulting Firms in 2018 by Forbes.[44] In addition to those awards, AlixPartners earned a score of 100% each year (since 2018) in the Human Rights Campaign Foundation's Corporate Equality Index, ranking as one of the "Best Places to Work for LGBTQ Equality".[45][46]

References edit

  1. ^ "Simon Freakley new Chief Executive of AlixPartners". www.consultancy.uk. August 12, 2015.
  2. ^ a b Merx, Katie. "Thinking Big Thoughts." Crain's Detroit Business 19.36 (2003): 18. Regional Business News. Web. 29 May 2013.
  3. ^ "AlixPartners Company Profile - Bloomberg". www.bloomberg.com. Archived from the original on 2019-05-18. Retrieved 2021-12-17.
  4. ^ Hall, Kalea. "GM, Ford introduce new ways to deal with chip crunch". The Detroit News. Retrieved 2021-12-17.
  5. ^ "When the Going Gets Tough, Turnaround Specialist Jay Alix Gets Busy". 2002-09-23. Retrieved 2019-06-21.
  6. ^ 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.
  7. ^ tyost00000. "Chicago-based John Loehr joins AlixPartners as a managing director in automoitve and industrial". chicagotribune.com. Retrieved 2019-06-21.{{cite web}}: CS1 maint: numeric names: authors list (link)
  8. ^ "Dallas investor lost millions in Madoff Ponzi scheme". WZZM13.com. Retrieved 2021-08-05.
  9. ^ "Turnaround Firm AlixPartners Is Sold". DealBook. August 4, 2006.
  10. ^ "M&A: July 2, 2012".
  11. ^ a b 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.
  12. ^ 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/
  13. ^ New York Times, "Kodak Replaces Its Restructuring Chief", Jan 23, 2012, http://dealbook.nytimes.com/2012/01/23/kodak-replaces-its-restructuring-chief/
  14. ^ 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/
  15. ^ Mattioli, Mike Spector, Emily Glazer and Dana (2013-04-23). "J.C. Penney Working With AlixPartners on Cost Savings". Wall Street Journal. ISSN 0099-9660. Retrieved 2022-08-05.{{cite news}}: CS1 maint: multiple names: authors list (link)
  16. ^ Merced, Michael J. de la (2012-06-24). "CVC Capital Clinches AlixPartners Deal". DealBook. Retrieved 2019-06-21.
  17. ^ "AlixPartners buys New York-based Evidence Exchange". www.consultancy.uk. 23 December 2014. Retrieved 2019-06-21.
  18. ^ "Alix Partners to acquire Zolfo Cooper's UK & European operatons [sic]". Accountancy Age. 2015-02-16. Retrieved 2019-06-21.
  19. ^ "AlixPartners Completes Acquisition of Zolfo Cooper - News | ABL Advisor". www.abladvisor.com. Retrieved 2019-06-21.
  20. ^ Pollock, Lauren (3 August 2015). "AlixPartners Names Simon Freakley as Next CEO". Wall Street Journal. Retrieved 2019-06-21.
  21. ^ Merken, Sara (2020-08-04). "AlixPartners lands former FBI director in acquiring Freeh Group International Solutions". Reuters. Retrieved 2021-06-14.
  22. ^ "AlixPartners buys antitrust litigation specialist Matrix Economics". www.consulting.us. 2020-06-01. Retrieved 2021-06-14.
  23. ^ "AlixPartners adds Palantir's Foundry platform to its offerings". www.consulting.us. 10 November 2021. Retrieved 19 November 2021.
  24. ^ "Professional services firm AlixPartners agreed swoop on rival THM". Sky News. Retrieved 2023-03-09.
  25. ^ "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.
  26. ^ "AlixPartners hires MD for PE and investors practice". PE Hub. 2018-11-05. Retrieved 2019-06-21.
  27. ^ "This Is What Peak Car Looks Like". 2019-02-28. Retrieved 2019-06-21.
  28. ^ "Energy-Industry Expert Joins AlixPartners as a Managing Director - News | ABL Advisor". www.abladvisor.com. Retrieved 2019-06-21.
  29. ^ "Men's Wearhouse engages AlixPartners to support Jos. A. Bank merger". Chain Store Age. 2014-03-31. Retrieved 2019-06-21.
  30. ^ 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.
  31. ^ 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.
  32. ^ Kuriloff, Aaron (2014-09-04). "AlixPartners Will Lead Puerto Rico Power Authority's Restructuring". Wall Street Journal. ISSN 0099-9660. Retrieved 2019-06-21.
  33. ^ "AlixPartners expands human capital advisory offering". www.consultancy.uk. 23 January 2015. Retrieved 2019-06-21.
  34. ^ "Global Investigations Review - GIR 100 2020". globalinvestigationsreview.com. Retrieved 2021-06-24.
  35. ^ Zinets, Matthias Williams, Natalia (2017-11-24). "Exclusive: Ukraine tycoon files suit against AlixPartners over PrivatBank nationalization". Reuters. Retrieved 2021-06-24.{{cite news}}: CS1 maint: multiple names: authors list (link)
  36. ^ "Global Investigations Review - GIR 100 2020". globalinvestigationsreview.com. Retrieved 16 July 2021.
  37. ^ Stokes, Samantha. "Turnaround consultant AlixPartners is 'recruiting like crazy'. Its restructuring group leaders lay out how the firm is prepping for an influx of work and the benefits of virtual war rooms". Business Insider. Retrieved 2021-06-30.
  38. ^ "Cineworld screens AlixPartners for talks on $8bn debt pile". Sky News. Retrieved 2021-06-30.
  39. ^ Jones, Ashby (2014-04-10). "AlixPartners Accuses Directors Heading to McKinsey of Trade-Secret Theft". WSJ. Retrieved 2019-06-21.
  40. ^ 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.
  41. ^ Mike Leonard (August 22, 2023). "McKinsey Ordered to Face Racketeering Lawsuit by Rival Jay Alix". Bloomberg Law.
  42. ^ "AlixPartners Pros Honored with TMA "Turnaround of the Year" Awards - News | ABL Advisor". www.abladvisor.com. Retrieved 2019-06-21.
  43. ^ "The 2018 Best Firms to Work For: AlixPartners". Consultingmag.com. Retrieved 2019-06-21.
  44. ^ "America's Best Management Consulting Firms". Forbes. Retrieved 2019-06-21.
  45. ^ Campaign, Human Rights. "CEI: 2018 Statements from Employers That Rated 100 Percent". Human Rights Campaign. Retrieved 2019-06-21.
  46. ^ "The top US consulting firms for LGBTQ employees and allies". www.consulting.us. 2021-02-01. Retrieved 2021-07-28.

External links edit

  • Official website

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