Alvarez and Marsal

Industries

A&M provides global leadership, problem solving and value creation for companies across different industry sectors. We work as advisers, interim leaders and partners, setting the standard for helping organizations tackle complex business issues, increase performance improvement and maximize stakeholder value.

Aerospace, Defense & Aviation

Aerospace, Defense & Aviation

What We Do

Combining our heritage in taking on complex and challenging environments and situations to help create high performing teams and deliver results

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Aerospace, Defense & Aviation

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Case Study

CLIENT

Working Capital, Quality and Cost Performance Improvement for Tier II Supplier

ROLE

Our A&M team implemented a prioritization approach to focus the entire business on the key products driving Revenue, RM, WIP, and Quality activity.

  • Quality – Developed Pareto by defect issue/cause; utilized quality focused “Tiger Teams” to address largest customer / source issues first; and established MRB team to manage and work down Aged and Current MRB
  • Production – Streamlined shop-floor with visual management / prioritization and standard work tools to eliminate bottlenecks. Conducted 12 Kaizen and TPM events uncovering 80+ lead-time, efficiency and quality opportunities. Implemented majority of critical actions
  • Inventory Management – Rebuilt inventory location system, conducted a full physical inventory, and re-focused purchasing team on high value items

IMPACT

$21.4M

24% increase in Q1 2017 shipments from Q4 2016

22%

Decrease in past dues from November to end of April

$6.1M

Potential sales revenue recovered from MRB, including $2.9M from aged MRB in 4 months.

20%

Decrease in raw materials and WIP decreased 9% or $1.6M in 4 months.

Business Services

Business Services

What We Do

A&M combines our operational edge and industry experience as we partner with your management team to drive performance improvement and deliver bottom-line results for your business.

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A&M Rapid Results ProgramTM

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Case Study

CLIENT

Payroll Services Provider

Company is a leading human resources capital management company

ROLE

Assess performance improvement drivers and cost reduction in the following areas:

  • Sales, Marketing and R&D
  • General and Administration
  • Product Management and Development
  • Customer Support
  • Product Operations
  • Technology
  • Implementation

IMPACT

Developed high-level action plan for cost take-out ($17.4M to $27.9M, 8% to 13%)

Consumer Products

Consumer Products

What We Do

Understanding digital media and today’s consumer behavior, we empower your company’s messaging and investment strategy through A&M’s advanced predictive analytics.

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CFO Services & Interim Management

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Case Study

CLIENT

$100M

Cosmetics Manufacturer

Privately held cosmetics manufacturer struggling with supply chain and ERP module resulting in a drop in sales and negative cash flow

ROLE

Interim Management in operations, planning and quality assurance

Improve inventory accuracy which was tracking at 50 percent

Rationalize warehouse footprint and operations

Restructure the organization to improve the cost structure

IMPACT

15%

Increase in order fill rates in 3 months

80%

Improvement in accuracy & timeliness of closing work orders

90%

Increase in inventory accuracy & cleared order backlog

Insurance

Insurance

What We Do

We provide actionable business insights, removing the guess work associated with the insurance and risk value chain through our unique team of professionals with industry and corporate risk experience.

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Insurance & Risk Advisory Services

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Case Study

CLIENT

US Provider of Renter's Insurance

Client was experiencing higher loss ratio compared to prior years

ROLE

Identify drivers for the high loss ratio and suggestion of mitigation option

Created detailed report outlining the factors for the loss ratio impact, potential claim handling impacts on the loss ratio and impact of premium, rate change and claim count

IMPACT

$1M

Identified in missed claim recovery over 4-year period

Provided client with clear view of profitability along with shift in the mix in book of business, subrogation and salvage and generic impact of claim count and total incurred

Manufacturing

Manufacturing

What We Do

We focus on EBITDA improvement through optimization and implementation of short, medium and long term initiatives in operations and strategy.

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Operations Management

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Case Study

CLIENT

Aerosol Contract Manufacturer

A PE owned leader in specialty chemical manufacturing faced numerous issues with a new acquisition

ROLE

Led PMO for product transfer out of main plant into four other facilities

Interim Management: General Manager of business unit, Plant Manager

Turnaround of plant, consolidation of the main plant, and transfer of products throughout the network

IMPACT

19%

Increase in EBITDA

79%

Reduction in backlog

43%

Reduction in WIP

16%

Reduction in SG&A and indirect headcount

12.5%

Increase in units per labor hour

Wind-down and closed of compounding and aerosol filling plant and transfer of 655 SKU’s to 4 other plants

Process Industry

Process Industry

What We Do

Our Process Industry Team includes extensive, market leading operating experience in specialty and commodity chemicals and process industry operations. We assist our clients in making wise investment choices and managing portfolio companies to maximize value in industries that require specific knowledge and experience.

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Process Industry

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Case Study

CLIENT

Coating Resin Division of a Public Specialty Chemical Producer

Client was experiencing a dramatic drop off in EBITDA performance over an 18 month period following an acquisition

ROLE

Rapid Results diagnostic focused on procurement, operations and commercial processes

Aligned sales incentives with new margin management program

Designed and implemented new operational processes and management framework

Developed new operational KPI’s for all manufacturing locations

Integrated select back-office processes and structure to become more efficient

IMPACT

$22M

EBITDA Increase, 2X increase in run-rate EBITDA (relative to normalized pre-acquisition levels)

35%

Increased OEE, significant upgrades to all core business processes

Retail

Retail

What We Do

A&M brings broad and in-depth retail industry knowledge and experience, developing tailored results-oriented solutions with a focus on rapid implementation.

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Supply Chain & Procurement Services

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Case Study

CLIENT

$5B

Luxury Multi-Brand Apparel Retailer

American luxury specialty department store who was experiencing moderate top-line growth with declining EBITDA over the previous 3 years.

ROLE

Conducted current state assessment of indirect spend management organization

Summarized contracts by category including: key vendors, contract disposition and negotiation frequency

Collaborated with the large functional areas and business units in marketing, transportation & logistics, IT / Telecom, and store operations to define role and responsibilities necessary to support procurement requirements

Finalized organizational structure and defined performance management processes including KPI’s, and performance management scorecard

IMPACT

47%

Proposed organizational structure increased indirect spend management from 30% to 77% (~$631M).

Software and Technology

Software and Technology

What We Do

With a focus on value creation and growth opportunities, we help organizations navigate and innovate with the evolving landscape through operational and digital transformation.

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Technology Services

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Case Study

CLIENT

$1.2B

Global Communications Technology Business

Client operates a collaboration and communication company, once acquired by a PE firm the company’s quote to cash process was identified by management as a key area of focus due to complexity of distribution model

ROLE

A&M was engaged to conduct a Rapid Results OpEx Assessment on the complex Quote to Cash cycle with the goal of identifying minimum $10M to help address the remaining performance improvement gap

Assessment workstreams included:

  • Margin and cost transparency
  • Process and organization efficiency
  • Data and systems efficiency

IMPACT

$35M+

Performance Improvement Identified

OpEx assessment was completed in 6 weeks