Revenue of AlixPartners in France nosedives?

29 October 2019 Consultancy.eu

AlixPartners has seen its revenue filed in France drop by 31 per cent in its latest financial year. The consulting firm however says that the figure is not an accurate reflection of its French business, highlighting that actual performance – reported to the firm’s headquarters – in fact showed a modest uptick.

With over 2,000 consultants and staff working from offices in 20+ cities around the world, AlixPartners is one of the globe’s larger management consulting firms. The New York headquartered firm is most known for its work in restructuring and turnaround, mergers & acquisitions, and performance improvement.

In France, AlixPartners currently has a team of nearly sixty consultants, led by Managing Director Alain Guillot. Analysis by Consultancy.eu on AlixPartners’ French statutory accounts submission for FY2018 shows that while the management consulting firm managed to grow its reported revenue by 2.3% in 2017 to €61.9 million, in 2018 the number nosedived by 31% to €42.9 million.

AlixPartners France primarily works for clients in the aviation & aeronautics, automotive, energy, retail and technology sectors. The consulting company also has a track record supporting financial institutions, private equity groups and family offices with deal-making and turnaround.

Revenue of AlixPartners in France nosedives

Asked about the local development, a spokesperson of AlixPartners said that the filing of the financial statements at the French chamber of commerce is a regulatory requirement, but as in other countries the firm operates in, the data “is not a reflection of the French practice’s overall performance as it does not show all the work won and delivered.” French partners and consultants could have for instance won work in Germany and United Kingdom, with the fees embedded in the accounts of those practices.

In fact, according to AlixPartners, helped by engagements at major organisations such as CGG, Toy R Us and Airbus the revenue of its French arm was up slightly on the year previous, with the number of Managing Directors (the firm’s equivalent of Partner) remaining stable at 10.

The privately-held company is owned by its partners, a consortium of investors and founder Jay Alix, and the firm releases no accounts on group or country revenues. Globally, its income is estimated at close to the $1.5 billion mark.

Meanwhile, reporting by French consultancy platform Consultor has revealed that Catherine Sherwin, a UK-based Managing Director, has been put forward by the firm's European headquarter in London to support the French team with growing its practice.

The news comes against a backdrop of booming activity in France’s consulting market. The industry has enjoyed six consecutive years of growth and is now valued at €7.3 billion, making it Europe’s third largest consulting landscape following the United Kingdom and Germany.

On the back of the growing landscape, the battle for top talent among tier-one consultancies is intensifying. Earlier this month, Bain & Company partner Stéphane Charvériat left the firm to join competitor Boston Consulting Group, the same firm that late 2017 poached three of AlixPartners’ more senior partners – Yahya Daraaoui, Renaud Montupet and David Benichou.

The trio joined BCG Turn, BCG's arm dedicated to restructuring and turnaround services, in a carve-out that later on led to a fierce court case between the two consultancies.


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