Alvarez and Marsal

Alvarez & Marsal was founded in 1983 by Tony Alvarez II, former Coopers & Lybrand workout specialist and Bryan Marsal, a former Citibank workout banker, after the two met and worked together at Norton Simon Inc. They created a professional services firm focused on turnaround management, corporate restructuring and operational performance improvement in an area where previously individual executives operated. The first turnaround client of the firm was Timex Corporation. A&M grew slowly through the 1980s and 1990s with a small team focused on restructuring based in New York and, by 1994, a satellite office in Los Angeles.

During the 2000s, while continuing to specialise in turnaround work, and continuing to take executive and Chief Restructuring Officer roles, the firm expanded its practice and grew its revenues with much of the increase coming from private equity firms that hired A&M for services across the investment life cycle, from due diligence and performance improvement through to asset sales.

By 2013, Alvarez & Marsal had grown to over 3000 personnel working from 55 offices around the world.

Criticism

Competitors have suggested that Alvarez & Marsal has considered its own business objectives while restructuring failing companies, pointing to a deal with Enron Corp.'s accounting firm, Arthur Andersen as an example. While dismantling Andersen, they note Alvarez & Marsal hired six turnaround specialists from the firm. At Lehman Brothers, A&M received nearly $500 million in fees over the three years following the bank's collapse making the Lehman bankruptcy the most expensive (and arguably the most complex) in history as of 2013.

In December 2024, Alvarez & Marsal’s profits dipped after it had offered £1 million pay deals to attract staff from major accounting firms. A&M’s European sector saw a turnover from professional services to rise up by 30% to €570 millions.