Global professional services firm Alvarez & Marsal has received two top honors from the 8th Annual M&A Advisor Turnaround Awards.
The firm was honored with Cross-Border Restructuring Deal of the Year (Over $1 Billion) for its work with Arcapita Bank and Chapter 11 Reorganization of the Year (Over $1 Billion) for its work with Central European Distribution Corporation.
M&A Advisor, the organization recognizing excellence among the world's leading dealmaking professionals, also honored A&M at last year’s Turnaround Awards with wins in three categories.
Further details on the 8th Annual M&A Advisor Turnaround Awards can be found here.

Five years after the collapse of Lehman Brothers, supranational authorities and European national central banks are rebuilding and strengthening banking systems. To guard against future taxpayer bailouts will require in-depth understanding of risks and of the safeguards necessary to maintain stability. In response, European banks are now reacting to this shifting economic, competitive and regulatory landscape. 
In Headwinds and Tailwinds: After Capital, Conduct, A&M outlines the current state of the European banking sector, with our recommendations for banks as they prepare to meet the demands of new regulations and build market Confidence in the sector. Many of the new rules and plans for their implementation are still under review.
The aims of the new regulations are to reduce systemic risk by addressing issues of capital, liquidity, leverage, and conduct. With the new regulations in place, no bank should be too big to fail.
How European banks can restore confidence in the post-crisis banking sector. 

“Much like buildings have fire codes we need a cyber code,” says A&M Managing Director Tom Kellermann to USA Today.  Learn more about the January 27 Justice Department announcement allowing U.S. tech giants to disclose more information about how often the government requires them to turn over customer data.

When Lloyds of London released their 2013 Risk Index, it became clear that cyber security is an increasing concern around the world. In this report, cyber risk rose from position 12 in 2011 to the world’s number three risk overall.
While many board members are still not comfortable dealing with cyber issues, A&M’s William Beer and Tom Kellermann urge that delegation and avoidance is a dangerous step to take. As they explain in Corporate Board Member, there are five categories of cyber threats, including Financial Crime, Espionage, Activism, Warfare, and Terrorism, and each requires board level visibility and support.

Alvarez & Marsal (A&M) has expanded its Global Forensic and Dispute Services group with the addition of two senior professionals based in Houston. David Leathers, who advises clients on the economic, valuation and accounting issues that arise during transactions, disputes and investigations, has joined A&M as a Managing Director. Jane Kidd, an economic expert focused on energy disputes, has joined as a Senior Director.
With more than 20 years of experience and a special emphasis on the technology and energy sectors, Mr. Leathers advises companies, boards of directors and legal counsel on the valuation of business and intellectual property (IP) assets in connection with licensing and joint venture transactions, commercial disputes, capital raising efforts, mergers and acquisitions, and inter-company transactions. He has significant experience in the oil and gas industry, having advised on matters involving oil field services, drilling, refining, transportation, and crude oil trading and exchanges agreements.  He has also testified in both federal and state courts around the U.S., as well as in arbitration matters.
Ms. Kidd, who brings 15 years of economic research and consulting experience, advises corporate clients, law firms and government agencies on a wide variety of economic issues in disputes concerning the petroleum, natural gas and electric power industries. Her expertise includes valuation, market power, lost profits, disgorgement, merger analysis and regulatory impact. She has served as an economic expert in federal and state court and arbitration proceedings.
“Financial disputes over asset values in connection with transactions and contracts have continued to rise, particularly in the rapidly changing energy and technology sectors,” said Bill Abington, Managing Director and member of A&M’s Executive Committee. “The arrival of these two talented and deeply experienced professionals expands A&M’s global expertise in technology, and adds to its already deep strength in the energy industry.”
Prior to joining A&M, Mr. Leathers led the legal and economic advisory practice for a global boutique consulting firm.  Previously, he was a Managing Director with Huron Consulting Group, served as a Vice President with Charles River Associates, and was a Principal and Senior Consultant with PricewaterhouseCoopers.  Earlier in his career, he held various financial, accounting and management positions in the banking industry. 
Mr. Leathers has participated in license negotiations for technologies ranging from semiconductor manufacturing to protein therapy, and is often asked to provide expert testimony on issues related to lost profits, business and intellectual property valuation, reasonable royalties, misappropriation of trade secrets, shareholder disputes, and various oil and gas related contracts.  Additionally, he has been retained by boards of directors and special committees to perform financial and forensic investigations regarding allegations of breach of fiduciary responsibility, irregularities, suspected violations of the Foreign Corrupt Practices Act (FCPA), and in connection with instances of suspected embezzlement and other related fraudulent activity.
Mr. Leathers earned a bachelor’s degree in business administration and finance from the Hankamer School of Business, Baylor University and is an Accredited Senior Appraiser (ASA) and a Certified Fraud Examiner (CFE).
Mr. Leathers is a frequent speaker and has taught numerous continuing professional and legal education courses on business and intellectual property valuation, the calculation of economic damages and various topics in the financial and energy markets.
Ms. Kidd has led many disputes involving oil and natural gas production on private, state, federal and tribal lands. Her analyses span nearly every segment of the oil and gas industry, from exploration and production to refining and marketing. She also has experience navigating economic issues involving electric power and renewable energies and has advised pipelines and utilities about strategic initiatives related to cost of service, rate design and regulatory restructuring.
Before joining A&M, Ms. Kidd spent 13 years as an economist with Econ One Research, where she most recently served as Managing Director and Head of the Houston office. She earned a master’s degree in applied economics and bachelor’s degrees in political science and economics from Southern Methodist University.  She is a past president of the International Association for Energy Economics (IAEE) Houston Chapter.
 
About Alvarez & Marsal
Companies, investors and government entities around the world turn to Alvarez & Marsal (A&M) when conventional approaches are not enough to activate change.
Privately-held since 1983, A&M is a leading global professional services firm that delivers business performance improvement, turnaround management and advisory services to organizations seeking to transform operations, catapult growth and accelerate results through decisive action.  Our senior professionals are experienced operators, world-class consultants and industry veterans who leverage the firm's restructuring heritage to help leaders turn change into a strategic business asset, manage risk and unlock value at every stage.
When action matters, find us at alvarezandmarsal.com. 
Follow A&M on Facebook, LinkedIn and Twitter.

Alvarez & Marsal (A&M), the global independent professional services firm, today announces the appointment of Fernando de la Mora as a Managing Director in its Financial Industry Advisory Services practice. Based in Madrid, Mr. de la Mora also becomes Region Head for Alvarez & Marsal in Spain and Portugal.
Mr. de la Mora specializes in providing advice to financial institutions in the areas of capital, stress testing and risk management and he will be leading A&M’s European service offering in those areas. Having overseen the Lehman Brothers bankruptcy and played a leading role in the restructuring of banks and banking systems across Europe, Alvarez & Marsal has been addressing issues raised by the financial crisis since its beginning. The firm has successfully advised both individual institutions and governments in the restructuring of banks in Greece, Ireland, Iceland and Cyprus. In Spain, A&M advised the Fund for Orderly Bank Restructuring in relation to the creation of Sareb, the country’s ‘bad bank.’
Mr. de la Mora brings more than 20 years of experience conducting a wide variety of risk, capital, strategic planning and M&A advisory projects. His former clients include global financial services firms, investment banks, regional banks, insurance companies, asset managers and hedge funds.
Prior to joining A&M, Mr. de la Mora was a partner at PwC in New York where he led a practice of more than 350 professionals providing consulting services in risk management and regulatory advice. In addition, Mr. de la Mora has helped implement U.S. CCAR stress test guidelines to 13 of the 19 banks involved in the capital planning process led by the Federal Reserve.
In the area of risk management, Mr. de la Mora has served as an adviser to the Board of several major banks and insurance companies to strengthen risk governance and enterprise risk management practices in the context of lessons learned from the credit crisis.
Peter Briggs, Global Practice Leader of A&M’s Financial Industry Advisory Services, said:
“With his considerable experience in stress testing and quantitative analytics in particular, Fernando de la Mora’s arrival will allow A&M to better support European banks in addressing the complex issues of regulatory capital strength. We are delighted to have added a professional of Fernando’s calibre to advise our Spanish and European financial institution clients.”
Fernando de la Mora, Region Head for Alvarez & Marsal in Spain and Portugal, added:
“With the next round of ECB stress tests coming in 2014, the European banking industry and its regulators will focus on forward-looking capital adequacy assessments under severe systemic and idiosyncratic conditions. Stress tests will become yet another financial constraint for the banks together with leverage, capital and liquidity rules being implemented as part of Basel III. This raft of supranational regulations and scrutiny will impact banks’ business models and continue to present restructuring and optimization opportunities. In my new role at A&M, I look forward to helping clients react quickly and strategically to the rapid pace of change across Europe.”
Mr. de la Mora began his career with Banco Santander in Spain. He earned a bachelor’s degree in business and economics from CUNEF in Madrid. He also earned an MBA from University of Michigan and a master’s degree in e-business from Instituto de Empresa. He also holds certification in strategic planning from INSEAD.
Alvarez & Marsal
Companies, investors and government entities around the world turn to Alvarez & Marsal (A&M) when conventional approaches are not enough to activate change.
Privately-held since 1983, A&M is a leading global professional services firm that delivers business performance improvement, turnaround management and advisory services to organizations seeking to transform operations, catapult growth and accelerate results through decisive action.  Our senior professionals are experienced operators, world-class consultants and industry veterans who leverage the firm's restructuring heritage to help leaders turn change into a strategic business asset, manage risk and unlock value at every stage.
When action matters, find us at alvarezandmarsal.com. 
Follow A&M on Facebook, LinkedIn and Twitter.

Twila Day, Managing Director, has been selected by Houston Woman Magazine as one of its most influential women of the year.
Ms. Day, who joined A&M from Sysco Corp., where she served as chief information officer, expanded the firm’s growing ranks of former Fortune 500 CIOs now providing strategic IT services through A&M’s national performance improvement practice. She is a highly respected fixture in the Houston business and civic communities, currently serving on the boards of Women and Foodservice Forum, and Genesys Works Houston.
For more information on this honor, visit: http://www.houstonwomanmagazine.com/index.php/50-women

„Quo vadis Europa? – Perspektiven für den Wirtschaftsstandort Europa“ war das Thema des diesjährigen Wirtschaftssymposiums , welches die internationale Managementberatung Alvarez & Marsal (A&M) in Kooperation mit der American Chamber of Commerce (AmCham) am 6. November d.J. im Hotel Mandarin Oriental in München durchführen konnte. Die Veranstaltung stand im Zeichen des 30jährigen Bestehens von A&M. Bereits im vierten Jahr in Folge trafen sich über 100 hochrangige Vertreter von Industrie, Mittelstand, Finanzinstitutionen und der Politik, um über die aktuelle Wirtschaftsentwicklung in Europa zu diskutieren. In seiner Key-Note-Adress warnte der Präsident des Deutschen Sparkassen- und Giroverbandes, Georg Fahrenschon, vor schmerzhaften Folgen für die Verbraucher, falls die Niedrigzinsphase noch länger anhalten sollte. „Es wird zu deutlichen Lücken in der Altersvorsorge kommen“, prophezeite Fahrenschon. Auch die Sparkassen selbst bekämen die Folgen unmittelbar zu spüren. Die Niedrigzinsphase koste die Sparkassen jährlich etwa 500 Mio. Euro. Der Sparkassen-Präsident nahm auch Bezug auf die aktuelle Diskussion um die Einführung einer Finanztransaktionssteuer und bezeichnete diese als ein „völlig falsches Signal“. Diese Steuer sei absolut schädlich, treffe die Falschen und schade dem Finanzplatz Deutschland insgesamt. Zudem, so Fahrenschon, dürften die Ausweicheffekte nicht unterschätzt werden. „Natürlich werden institutionelle Anleger schlicht ausweichen und dem Finanzplatz Deutschland zukünftig meiden“. Es solle niemand ernsthaft glaubend mach können, das es möglich sei, den Handel von Chinesen oder Amerikanern mit deutschen Aktien z.B. in Tokio besteuern zu können. Fahrenschon: „Es muss vielmehr die Einsicht geben, dass es keine Form einer Finanztransaktionssteuer gibt, die Deutschland im Schulterschluss mit nur wenigen anderen europäischen Ländern der Welt aufdrücken kann.“

Leading global professional services firm Alvarez & Marsal (A&M) announced that Leslie Nielson has joined the firm as Managing Director and head of the firm’s growing Global Human Resources Tax practice.  She is based in New York.
Ms. Nielson has extensive expertise working with corporate and private equity clients during due diligence and post-transactional phases to evaluate, devise and execute human capital strategies.  With dedicated M&A tax experience across all human resource functions, she has advised scores of companies undergoing mergers, acquisitions, divestures and corporate reorganizations on employee benefits and compensation, including defined benefit pension plans, pre and post-retirement welfare plans and equity compensation.  Her experience also includes talent selection, human resources strategies and systems, performance policies, cultural issues and communication plans.  Beyond traditional human capital due diligence services, she is an expert in organization design, retention planning, talent selection and workforce planning.
“More and more, corporate and financial buyers are seeing the direct link between long-term deal success and traditional human resources priorities, like succession planning, talent recruitment and retention and employee engagement,” said Ernesto Perez, Global Practice Leader of the firm's Transaction Tax practice. “Leslie’s background and experience significantly enhances A&M’s capabilities in human resources tax strategies and makes an outstanding addition to our global transaction tax team.”
Ms. Nielson’s experience includes managing domestic and international M&A projects for middle and large market corporate buyers and private equity firms focused on industries including pharmaceutical, plastics, utilities, chemicals, hospitality, financial services and satellites, among others.  She also has worked with private equity firms on both new acquisitions as well as the implementation of sustainable cash savings and revenue enhancement solutions for existing portfolio clients.
Ms. Nielson joins A&M from Aon Hewitt in London, where she was a partner in the firm’s M&A Solutions global practice group and served as practice leader for the Europe, Middle East and Asia region.  Earlier in her career she served as a member of the Human Resources Transaction Services team at Pricewaterhouse Coopers in New York, specializing in employee benefits and compensation due diligence for global M&A projects.
Ms. Nielson holds a bachelor’s degree in actuarial science from the University of Iowa.
About Alvarez & Marsal
Companies, investors and government entities around the world turn to Alvarez & Marsal (A&M) when conventional approaches are not enough to activate change.
Privately-held since 1983, A&M is a leading global professional services firm that delivers performance improvement, turnaround management and business advisory services to organizations seeking to transform operations, catapult growth and accelerate results through decisive action.  Our senior professionals are experienced operators, world-class consultants and industry veterans who draw upon the firm's restructuring heritage to help leaders turn change into a strategic business asset, manage risk and unlock value at every stage.
When action matters, find us at alvarezandmarsal.com
Follow A&M on Facebook, LinkedIn and Twitter.

Recent, high-profile gaps and weaknesses in a company’s operations, processes and controls make the front page of the Wall Street Journal on a regular basis. When those company's gaps represent key extended operations with strategic suppliers, the supplier’s weaknesses -- as well as the client’s use of that supplier -- are often co-mingled from a media and reporting perspective.

For years, focus on supplier management, particularly for service-based organizations, has been de-prioritized to focus on immediate bottom-line impact delivered through strategic sourcing activities. The primary driver or perception has been that Supplier Management did not have the clear “pay-back” or deliver the “value” that strategic sourcing activities drive.

Additionally, given the constraints on hiring of resources that organizations continuously face, allocating resources to supplier management vs. strategic sourcing has impacted the focus on these activities further. But over the past few years, Alvarez & Marsal’s experience confirms that service-based organizations (particularly those that are heavily regulated – financial services, insurance, healthcare) and manufacturing organizations have increased this focus (both in terms of resources and investment) and now consider supplier management as critical if not more critical than strategic sourcing and procurement processes.

Defining Supplier (Vendor) Management

For reference, take a look at those sets of Supplier Management activities that occur after an agreement has been executed with a supplier (“Post-Deal” activities).

Key Enabling Supplier Management Activities

• Supplier Segmentation– One of the most critical activities as part of establishing a supplier management program is to properly segment or tier suppliers. In general, the number of suppliers in each tier should resemble a “pyramid” – namely that a very small number of suppliers at the top are considered “critical” or “Tier 1,” a larger number considered “Tier 2” and the majority of suppliers in terms of numbers should reside in the bottom 1 to 2 tiers.

  To develop a robust segmentation model, an organization should consider all of the elements or attributes that define “strategic” for your organization as well as “inherent risk” for your organization. These attributes should become the basis of a formal segmentation model that can also be weighted based on relative priority of each attribute.
   

• Resource Allocation: Budget, Time, People (internal / external), Activity, Technology – Allocating resources in terms of time, people / activity, systems and technology should mirror an “upside-pyramid” or opportune to the segmentation.

• Ongoing Monitoring– for critical outsourcing agreements (typically IT outsourcing or business process outsourcing), an ongoing monitoring capability is required to ensure all supplier expectations are being met. This should include both real-time activities as well as regularly scheduled check points including supplier audits.

Developing the Business Case for Supplier Management

As mentioned earlier, companies often struggle with internally developing the internal business case to allocate resources (budget, people, time, technology, other) to creating a sustainable, robust supplier management program. Leaders in their respective organizations must develop both quantitative and qualitative benefits to implementing that program. When creating the business case, organizations should quantify or at least qualify the following:

• Cost Savings Realization– commonly, strategic sourcing and procurement organizations report on “savings forecasted” or “negotiated savings,” but do not follow-up to understand if the savings where actually realized. Implementing a contract compliance capability as part of a broader Supplier Management program is one way to quantify the benefits.

• Supplier Risk Management– Inherent Risk is the risk that is identified based on risk attributes from an activity or relationship. Residual Risk is that risk that remains after due diligence and mitigating controls has been implemented to reduce the Inherent Risk. A well-defined supplier management program can add value by first measuring and quantifying Inherent Risk and facilitating the mitigation of that Risk to generate a lower perceived Residual Risk.
   
• Supplier Performance Management – Long a cornerstone of Supplier Management programs, measuring performance of your critical suppliers (considered Tier 1) and Tier 2 suppliers provides a quantifiable opportunity to measure ongoing performance and improvement over time.
   
• Continuous Improvement and Innovation Programs – A more “mature” practice but one that is increasingly becoming a core activity in Supplier Management programs is driving continuous improvement (incremental improvements over time in cost, service, quality, processes, productivity, systems or automation) initiatives with key suppliers. Additionally, collaborating with key strategic suppliers to drive joint-innovation programs (programs that help develop new products, services or solutions in the market) can provide a paradigm shift in benefiting from Supplier Management for companies across industries.

Conclusion

Designing and implementing a supplier management program is critical to ensure that risks are understood, mitigated and / or accepted as a course or conducting business. Additionally, full realization of an organization’s investment in sourcing of goods and services is ultimately realized through a robust, ongoing supplier management program. Qualified external resources can often assist organizations facing challenges with positioning or implementing a supplier management program.

Author:

Hani Alexander
Managing Director
+1 310 975 2668

For More Information:

Supply Chain Operations

"At a minimum, it's going to force this conversation up the food chain, out of the CEO office into the boardroom,'' says A&M’s Tom Kellermann, former Cybersecurity Commissioner for the 44th Presidency, about the recently released National Institute of Standards and Technology (NIST) standards meant to help companies better defend against cyber attacks.
The NIST framework was finalized on February 12, and in a Reuters piece about the criticism and support the act has received, Kellermann and other experts speak to the ability of the bill to help businesses combat cybercrime, as well as the potential dangers of opting out of the voluntary measures.