Alvarez & Marsal Launches AI-Enabled Zero-Based Optimization (AI-ZBO) to Accelerate EBITDA Improvement for Private Equity

A clean-sheet approach that redesigns priority workflows using applied AI to reduce rework, compress cycle time, and deliver durable EBITDA impact.

NEW YORK, June 30, 2026 /PRNewswire/ -- Alvarez & Marsal (A&M), a leading global professional services firm, today announced the launch of AI-Enabled Zero-Based Optimization (AI-ZBO), a new A&M Private Equity Performance Improvement (A&M PEPI) service designed to help private equity sponsors and portfolio companies accelerate the realization of durable cost and performance improvements by redesigning workflows with targeted use of AI across high-frequency, decision-heavy processes (e.g., order-to-cash, procurement-to-pay, pricing, and customer operations).

Unlike traditional cost programs that optimize within existing structures, AI-ZBO applies a clean-sheet approach to reset the operating baseline from zero, compressing cycle time and improving execution velocity. The result is a pragmatic, actionable path to tangible EBITDA and cash improvement aligned to private equity timelines.

Nick Alvarez, Managing Director and National Practice Leader of A&M PEPI, said, "AI-ZBO is built for the reality sponsors face today: higher value creation expectations and tighter timelines. Traditional cost optimization is table stakes and too often treated as a one-time exercise. We use applied AI to rewire day-to-day workflows and give sponsors and management teams better visibility to make faster, better decisions—driving measurable EBITDA and cash impact that holds."

Markus Lahrkamp, Managing Director and Leader of A&M PEPI's Commercial and Operations Service, said, "AI-ZBO extends our ability to drive performance improvement for clients.  We use AI to reduce manual rework, automate repeatable decisions, and hardwire the right oversight controls into core workflows so the impact is durable well beyond our project engagement."

Anil Kumar, Managing Director, added, "AI-ZBO starts by identifying the highest-value workflows where AI pays off first for our clients, specifically where cost, volume, and decision frequency intersect. From there, we determine where AI can reduce effort, improve decision quality, or increase throughput. In targeted roles, we have seen 15–25% productivity uplift through AI-enabled automation, decision support, and reduced rework."

Michael Beetz, Managing Director, added, "We don't treat AI as a bolt-on or generic platform roll-out. AI‑ZBO is embedded into each client's operating model. It is designed around their workflows, data reality, and control environment, so it scales responsibly and delivers outcomes."

AI-ZBO is structured to enable speed and clarity early, with a diagnostic typically completed in 3–6 weeks and a quantified set of improvements that translate into an implementation blueprint. The service is delivered through four integrated phases:

1. Profitability Transparency: Establish where value is created, what drives margins, and where complexity and cost sit, including cost-to-serve by customer, product, and channel.
2. Clean-Sheet Redesign: Focused on the core business, organization dynamics, and priority workflows with targeted AI enablement.
3. Value Sizing & Sequencing: Quantify improvement initiatives and required investments to prioritize what matters most, both now and next, then sequence initiatives to deliver EBITDA and cash impact.
4. Execute Value Realization: Translate the plan into action, implementation, trackable outcomes, and sustained results over time.

About Alvarez & Marsal

Founded in 1983, Alvarez & Marsal is a leading global professional services firm renowned for its leadership, action, and results. A&M provides advisory, business performance improvement, and turnaround management services, delivering practical solutions to address clients' unique challenges. With a worldwide network of experienced operators, world-class consultants, former regulators, and industry authorities, A&M helps corporates, boards, private equity firms, law firms, and government agencies drive transformation, mitigate risk, and unlock value at every stage of growth.

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SOURCE Alvarez & Marsal