The Idea that Started an Industry: The History of AlixPartners

In 1981, Jay Alix thought that there must be a better way to save the assets, jobs and value inherent in good companies caught in hard times. That led to an idea that eventually gave birth to a whole new industry: corporate turnarounds and restructuring.

Jay Alix’s very first interim management assignment—the restructuring and sale of the $5-million Electrical Specialties Co. in 1982—initiated the turnaround practice of what would eventually become AlixPartners, and literally launched a new professional services industry.

The firm pioneered a series of innovative concepts and practices including the role of chief restructuring officer (CRO), “turnaround teams”, and “success fees” that have helped to push the industry onto the front pages of the global media and into the everyday vernacular of managers everywhere. From the beginning, notable clients were won, including DeLorean Motor Co. in 1984 (recovered $100 million in hidden assets for DeLorean’s creditors) and Wang Laboratories Inc. in 1989 (first use of the “turnaround team” model, which leverages the client’s own people and thereby inculcates the turnaround tools).

Institutionalizing a Unique Culture

From the very beginning, Jay Alix aimed to “institutionalize” the culture of his firm—unusual in an industry in where often a firm relies on one or two top “stars.” Instead, Jay Alix created a company whose clients got the same high, senior level of service no matter what their size or geographical location. To this day, AlixPartners deploys small teams of senior, experienced professionals to all its clients, rather than sending one senior consultant leading an army of younger associates.

Jay Alix embraced a “whole person” philosophy, hiring professionals who were not only talented and experienced, but also team-oriented, hard-working and, importantly, optimistic—an important quality when faced with the often-dire straits of the restructuring and performance-improvement businesses. To this day, the firm administers psychological tests to all potential employees to ensure “cultural fit.”

This careful hiring and commitment to firm culture paid off. As the staff size grew rapidly, so did the firm’s business. After becoming established as the recognized leader in corporate turnarounds and restructuring, AlixPartners began to expand into other professional-services areas. As the first to recognize the key role of technology in successful corporate turnarounds, AlixPartners built a team of nationally recognized litigation-consulting experts who specialized in areas such as forensic accounting, deal valuation and analysis, and expert testimony. At the same time, the firm built its enterprise improvement practice, dedicated to helping companies improve operational and financial performance.

AlixPartners Today

From its base of just three U.S. offices (in Detroit, New York and Chicago), AlixPartners built a global reputation through work with many multinational clients. Today, AlixPartners is a global firm of 900 professionals on three continents around the world. The firm has been retained as restructuring advisor and/or interim management in some of the largest Chapter 11 reorganizations in history, including Enron, General Growth Properties, and General Motors, to name only a few. And AlixPartners continues to establish itself as a global player in “healthy-company” work, with much of the firm’s business currently with healthy companies.

The AlixPartners vision is clear, powerful and revolves around our people and our clients: To be the leading professional-services firm dedicated to enhancing and protecting client performance where the very best people work together with shared values when it really matters.

Recent Awards & Distinctions

• 2011: Turnaround Management Association honored AlixPartners with both the, "2011 Transaction of the Year – Mega Company" Award and the "2011 Transaction of the Year – Mid-size Company" Award.
• 2011: Consulting Magazine presented a “Top 25 Consultants 2011 – Excellence in Leadership” award to Fred Crawford.
• 2011: The Global M&A Network named AlixPartners “Global Turnaround Consulting Firm of the Year” for “top-performing” assignments including General Growth Properties, Reader’s Digest and LyondellBasell.
• 2011: The Global M&A Network presented its "Large Chapter 11 Reorganization of the Year" award to AlixPartners client General Growth Properties Inc.
• 2011: Turnarounds & Workouts named three AlixPartners engagements—General Growth Properties, LyondellBasell and Reader’s Digest—among the top 10 most “Successful Restructurings” for 2010.
• 2010: Named Consulting Firm of the Year by M&A Atlas Awards
• 2010: Received M&A Advisor’s Turnaround of the Year Award ($50MM-$100MM category)
• 2010: Six London-based Managing Directors named to Private Equity News’ list of top restructuring advisors in Europe
• 2009: Ranked #1 turnaround & restructuring firm in the French market by Decideurs Strategie Finance Droit
• 2009: Named one of Consulting Magazine’s “Best Firms to Work For” (#6)
• 2009: Awarded Turnaround Deal of the Year by M&A Atlas Awards