Greenhill -- Reputation / Exits
Have been reading here recently that they are on a decline. Can someone confirm? How does it compare to the other EBs, e.g. Moelis, Evercore, Centerview? How are the exits? How is the restructuring practice? How many SA per class? Target schools?
Thank you
Just hired previous head of RX at Rothschild, so they're clearly investing in the business...I guess time will tell whether that pays off.
-
Don't, sorry
.
GHL, MC, EVR, HLI, and LAZ are all public. You can take a look at how they've been performing.
For the NY office about 10 FT ny sa class should be roughly 7 other locations are smaller
target schools include top unis (hyps) and top state unis as well (ex: kelley, osu, ross ) they mix it up and generally hire one from each school
unfortunately, they haven't been performing as well as the other EBs and might be declining, however, it's not to the point you won't have any opportunities post-analyst. But their future isnt necessarily predictable like the future firms so who knows.
idk much about the rx practice and hopefully someone else can shed some light. Will stress that their culture is great and laid back. They work well together and very chill people. Not fratty, not too uptight, etc. Comp should be in line as well.
from what I can see the move is generally mm pe inside and outside ny after the analyst years. I dont think you will have the mega fund opportunities you would at top EBs tho. They have very low if not zero retentions after analyst years
this is from the people I have met/seen and I did/do not work/interview there so take what i say with a pinch of salt.
Overall likely not as strong as mid 2000s, but I think recent decline has been a bit exaggerated; 2017 was terrible but 2016 was a good year and their 2018Q1 was highest revenue total ever (of course, in hot M&A market). Seems to be a cut below EVR/PJT from what I've seen but past ~2 years placements vary with Ares, WP, and MDP. Another post had listed out full exits.
As for Rx, as mentioned they've made a couple key hires over the last few months and its been a key point of their plan to build the team out to 25+ professionals. Should be interesting to see how it plays out but activity has certainly been picking up quite a bit
They had to leverage up like crazy to do share buybacks to keep their employees since a good amount of their comp is in share compensation. 2017 was a crappy year for them. Not sure how they’re doing now, but I recalled thinking they had a bleak future.
Seems like they hit rock-bottom in 2017.
So far for 2018 they've been doing quite well with high profile deals (ie. Novartis/GlaxoSmithKline, IFF/Frutarom etc). GHL is much smaller than most other EBs so they don't compete in the same way on the league tables.
Junior exits have always been top notch.
Look at the stock price.
PF for recent quasi-LBO.
Compare to comps.
Compare over last year or two.
Form your own opinion.
Let us know.
Also: they don't do a lot of deals....
Greenhill to be purchased? (Originally Posted: 05/09/2013)
This is very much just a rumor article from Bloomberg, linked text but the overall idea is something worth bringing up. Is this the right time for a bank like Greenhill to sell to a larger bank? Both Wells Fargo and Rothschild are named in the article, but I doubt those would be the only two suitors for a bank like Greenhill.
I have a close college friend who is an analyst at Greenhill and I just chatted with him about the idea of being sold to a Wells Fargo type bank. He basically brushed it off, but I'm not so sure it couldn't happen. Wells already showed their ability to buy a bank in order to break into M&A. RJ and Leucadia have also shown their willingness to purchase another bank.
I think the purchase makes a lot of sense for the likes of Wells and RJ. It allows them to expand their M&A reach as banks that are less established than the traditional BBs. Greenhill is so well respected, that the talent that would be brought on, assuming that it stays, would immediately bump up the respect the deal teams carry around. Side topic here is whether or not talent stays around after a big purchase like this.
Thoughts on what the right time is for these smaller but elite banks to sell?
I'd love to see Wells buy GHL.
It would definitely turn them into a BB... especially since they're currently the largest bank in the world.
By what are you measuring that? Not even close if by total assets.
Those Real M&A articles are all full of shit
Jesus imagine if RJ bought GHL... Can you say, power struggle?
Doubt Leucadia would look to buy another bank after taking in Jef. WF is pretty big, but unlike it's peers it has a smaller IBD focus.
BT hit it perfectly.
Wells Fargo + Greenhill = Top BB
delete
Great idea in theory for Wells but history shows buying an investment bank for its talent is suicide (CS buying FB, CS buying DLJ, Citi buying Salomon Bros). Everyone either: jumps ship as soon as they can or if they have huge guaranteed bonuses to stay on they completely check out while collecting the checks.
The only way this could work would be if Wells bought Greenhill and kept them as a quasi-independent subsidiary similar to how Eastdil works now. Greenhill would basically be Wells' much needed M&A specialist subsidiary that works with Wells' coverage/product groups.
Greenhill MDs are reading your post right now, young sir.
This fact always makes me wonder why they don't just go around poaching groups. Presumably if you took the offer you'd actually stay with the firm, versus a corporate buyout where you have no say over your suitor.
No. This doesn't work. 1 i-bank + 1 i-bank = 1 i-bank. Especially with elite independent firms. See: DLJ, First Boston, Wasserstein Perella, etc. I mean shit, Ken Moelis did it twice. The only success story in recent memory is Stifel, really, and that could change depending on how recent deals pan out.
@CoochieMane I don't think it's news to any of them.
Wells has looked at GHL before (I know from a source at Wells). WF also pays its bankers really well because they have a ton of cash post-recession and have made the decision to pay well and attract talent. GHL would be a good buy, particularly since they have a decent shot at keeping the talent unlike BAML.
Seemed to do well with Foothill. Foothill, Greenhill... they do sound alike...
Deutsche is actually the largest bank in the world in terms of total assets. JPM ia 9th and is the first U.S. Bank. Also HSBC has a larger market cap than Wells or JPM.
http://www.gfmag.com/tools/best-banks/11986-worlds-50-biggest-banks-201…
Turrible idea. On paper it makes sense - merging a bank with a great BS with a great advisory. However, people are at Greenhill for a reason. They want to work for a smaller advisory, not some large BB bank. It would not take long after the merger for them to jump to a place like Evercore, Blackstone, etc.
Personally I do not think the talent at Greenhill will stay there once WF buys them if at all. I do not think its going to work in the future. I have my doubts whether the merger will go through at all.
Wells having a higher market cap means that although JPM has more assets, the market values WF's assets higher.
Doesn't make any sense. If WFC buys anything, CS or UBS' investment banks would make the most sense
delete
What's your background?
Esse sit vel dolor excepturi soluta ut. Perspiciatis enim molestiae asperiores aut nemo facilis dolor.
Incidunt minima molestiae veniam autem. Illum ut quis maiores et aut nemo. Cum esse soluta qui odio veniam aspernatur. Qui itaque libero error quo aut consequatur. Voluptatem molestiae provident veniam. Non sit tempora aut inventore et modi.
Illum voluptas optio qui molestiae ut aut hic. Animi esse repellendus eos non facilis mollitia voluptatum nostrum. Amet ratione autem similique sunt voluptate temporibus. Rem quasi natus doloribus temporibus natus dolorem consequatur.
Veniam et delectus enim est. Eum voluptates dolores deleniti fugit. Doloribus sit maxime itaque et itaque dicta. Atque architecto labore omnis quod quia. Enim dolor nemo possimus et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Nemo ipsum voluptatem non ut asperiores voluptatem aut voluptas. Provident et optio omnis sed est. Nihil cupiditate nihil odio dolor excepturi officiis qui enim. Adipisci qui aut aut saepe.
Quos quis iure velit nostrum dolorem consequatur dolores. Eveniet eius ipsum beatae amet. Velit quaerat et autem maiores aliquam quasi est.
Et neque vel corrupti autem sed optio explicabo doloribus. Necessitatibus veniam non est doloremque. Beatae fuga totam est. Ex tempore vel velit optio qui iure odio. Fugit quia et suscipit dolor magnam veniam.