M&A Advisory
AlixPartners
Full Credential Description
After a phase of intensive mergers and acquisitions, a $20 billion defense company faced significant challenges in achieving operational targets, leading to pressure from investors for improved performance. To address these issues, the company enlisted AlixPartners to spearhead a comprehensive transformation aimed at identifying synergies across its various business arms.
AlixPartners established a transformation management office to ensure effective governance and consistent action from executive leadership throughout the transformation process. The team categorized and validated input data, leveraging a partnership with data-intelligence firm Palantir to pinpoint the primary cost drivers within the organization and to create a cost baseline for $15 billion of spending. This analysis facilitated the identification of workstreams ripe for optimization, allowing the team to prioritize gaps and implement a phased approach that focused on high-priority items and quick wins to generate momentum.
As a result of these efforts, the company achieved over $120 million in cost reductions across multiple functions within the following financial year. Furthermore, AlixPartners identified an additional $250 million in potential cost take-outs and developed a strategic plan to realize $1 billion in cost reductions over the subsequent three years. The transformation was not only timely and robust but also garnered the support of key stakeholders, reinforced by effective executive communications for board meetings and investor presentations.