Alvarez and Marsal – a leading US company that focuses on restructuring struggling investments and companies – has said it will double its business activities in the Middle East. The company is known for its work in turnaround management, corporate restructuring, and operational performance improvement.
Alvarez and Marsal first entered the region in 2016, with just four employees and now has a team of more than 50 people in the Middle East, which it now plans to double. One of the most prolific companies that the organisation has worked with is NMC Health, the biggest private health company in the UAE. Alvarez and Marsal took on the role of administrator for the company in 2020. The private health company went into an insolvency process following the discovery of billions of dollars of undisclosed debt. Alvarez and Marsal work with the company are still ongoing.
IMPACT ON THE MIDDLE EAST'S CONSTRUCTION INDUSTRY
The company’s Middle East head, Saeeda Jaffar, said Alvarez and Marsal is currently working closely with key players in the region’s construction industry. Jaffar said the industry was “currently going through a very challenging time” and that some large contractors were “quite financially stressed.” Although she did not disclose details of which contractors the company is working with.
Alvarez and Marsal is also working with the Middle East’s real estate market, which Jaffar said is less financially stressed than the construction industry. Instead, she said the real estate market is focused more on “transformational” action (such as looking at potential mergers, restructuring operations, and cash collection).
Discussing the growth of Alvarez and Marsal, which expects to see an increase to 60-70 employees in the region by the end of 2021, Jaffar said: “We fundamentally believe that in order to make change sustainable, you need to grow the talent. You need to transfer the knowledge to build the capabilities and the skill sets.”
Jaffar also said that, in light of the bankruptcy laws brought in recently across Saudi Arabia and the UAE, the legal framework could permit further restructuring work. However, the head of Alvarez and Marsal also said that it would “take time” to develop.
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