Alvarez & Marsal is pleased to announce the launch of its Working Capital Transformation practice, which enables companies to increase cash flow, reduce operating expenses and boost investor returns by optimizing the management of accounts receivable, accounts payable and inventory.

This team supports clients via 2-4 month engagements that rapidly generate cash flow from working capital, with a one-time cash benefit typically equivalent to 5 to 9 percent of a company’s revenue. In addition to the cash benefit, client companies can also improve the productivity and cost efficiency of their working capital-related business functions. 

The Working Capital Transformation practice provides end-to-end support ranging from analysis that identifies the opportunity to the staff who work alongside company management to realize it, including by taking interim leadership roles. This capability differentiates A&M from other large accounting and management consulting firms that are often restricted to advisory roles.

Led by Managing Director Brett Everhart and Senior Director Elliott Neal, this team provides clients with an objective perspective on how to leverage working capital to achieve a company’s full potential.

Key initiatives to transform working capital often include:

• Accounts Receivable (Order to Cash): Preventing unbilled accounts receivable and long billing timeframes, reorienting team structures and workflows to focus on the highest impact collection actions and improving processes to reduce payment dispute problems.
• Accounts Payable (Procure to Pay): Standardizing payment approvals, establishing contract governance guidelines and deploying best-practice accounts payable policies that align teams with optimal contracts, master service agreements and systems.
• Inventory Management (Forecast to Fulfil): Establishing enhanced inventory management and controls, eliminating excess inventory and improving the sales, inventory and operations planning (SIOP) function by optimizing the people, processes and tools on the SIOP team.

Richard Jenkins, A&M Managing Director and head of its PEPI CFO Services group, said “This team’s low-touch approach minimizes disruption to quickly develop an assessment and execution plan that is immediately actionable. Our clients especially appreciate our practice of using industry operators who work alongside their team in moving the ball forward to implement recommended improvements.”

Brett Everhart, A&M Managing Director and leader of the Working Capital Transformation practice, remarked “Clients often ask ‘what’s the quickest, most impactful way to improve the company’s cash flow?’ The answer is almost always to improve working capital management, and the cash generated by this approach can help achieve the company’s strategic goals by funding growth initiatives or other critical priorities.”

A&M has invested significantly in the Working Capital Transformation team, including by hiring Senior Director Elliott Neal who previously led working capital engagements and served as Chief Transformation Officer for private equity clients at a leading management consulting firm.

“I joined A&M because of its distinctive ability to drive change and its entrepreneurialism in finding ways to create value such as by launching the Working Capital Transformation practice. From my first day here, I’ve been greatly impressed by the firm’s culture and ability to deliver results which are at the highest level I have seen in my career,” said Mr. Neal. 

To find out more about how A&M can help improve your company’s working capital management, contact Brett Everhart or Elliott Neal through the 'Contact Me' button on their respective webpages. Learn more about our Working Capital Transformation Solutions service offerings here.