Alvarez and Marsal Valued at Up to $18 Billion Amidst Investor Interest in Professional Services Firms

Alvarez & Marsal, the New York-based professional services giant, has placed its potential value at up to $18 billion in a private presentation to its partners. The valuation, revealed during an internal meeting led by chief executive Bryan Marsal, comes amidst increasing global interest in consultancy firms by investors.

Marsal, speaking at a corporate away day in Portugal, highlighted the firm’s unprecedented growth and drew comparisons to rival firm AlixPartners. Alix, which recently engaged Goldman Sachs ahead of a stake sale, sparked speculation in the market with an estimated valuation of $8 billion. Based on this benchmark, Marsal proposed that Alvarez & Marsal could fetch twice as much, reflecting its expanded reach and stronger market position.

Founded in 1983 by Marsal and Antonio Alvarez II, Alvarez & Marsal has become synonymous with high-profile corporate restructuring. The firm currently employs over 10,000 people across 39 countries and reports annual global revenues of approximately $5 billion. Renowned for its work on the collapses of Lehman Brothers, FTX, and WeWork, the firm has also advised distinguished clients such as Pret A Manger, Rolls-Royce, the Swiss government, and Thames Water’s lenders.

Despite the interest surrounding a potential public listing, insiders report that the firm has no immediate plans to go public. The presentation was said to be a hypothetical exercise rather than a definitive step towards floating Alvarez & Marsal on the stock market. The firm remains majority controlled by the Alvarez and Marsal families, a structure that allows it to focus on long-term stewardship rather than short-term shareholder interests. The families collectively own around 50 per cent of the firm, with the remainder held by its equity partners.

The question of succession has loomed large for the founders, both of whom are in their seventies. Antonio Alvarez III, referred to as T3, manages the firm’s European division, while his brother Nick Alvarez leads the private equity practice in the United States. Despite speculation about a future public listing as a solution to succession planning, the organisation has maintained its dedication to its unique ownership model, reinforcing its stability and independence in an evolving market.

The professional services sector has seen a recent wave of investor activity, with private equity and sovereign wealth funds targeting firms like Alvarez & Marsal. Similar moves have occurred in other parts of the industry, particularly with the stake sale in AlixPartners and the Cinven-backed buyout of Grant Thornton in the United Kingdom last year. Such developments underscore the growing appeal and profitability of these firms in an increasingly competitive landscape.

Although analysts have expressed scepticism over whether Alvarez & Marsal could secure a valuation as high as $18 billion, the strength of its revenues, global presence, and legacy of corporate restructuring success make it a formidable contender in the financial services sector.