Mizuho to buy Greenhill
Just hit the tape on BBG, Mizuho to buy Greenhill for $15/share. Interesting acquisition, can they even keep the RX bankers?
Trending Content
| +130 | Is my life over after not getting GS? | 32 | 2h | |
| +107 | BEING WHITEGIRL IS PARADISE | 20 | 1s | |
| +73 | Best IB group on the Street | 35 | 52m | |
| +65 | Thoughts and tips on how to speak like an investment banker. | 25 | 20h | |
| +58 | BIG FOUR ARE PARADISE | 15 | 21h | |
| +49 | Tell me one good reason why Jefferies isn’t going to be a top bank in the next 5 years | 23 | 14h | |
| +38 | UBS Outlook | 28 | 1d | |
| +35 | How to deal with egotistical team? | 6 | 3d | |
| +33 | Highest Paid Bankers in Toronto? | 51 | 19h | |
| +31 | Are you “less ambitious” for having long term goals outside of NYC | 13 | 4h |
Career Resources
Mizuho now an EB
Bumping bc its so funny RIP GHL
Terrible deal. On both ends. (source: summered there and went somewhere else FT)
- Most of Greenhill's MDs are washed. This is likely their opportunity to retire in a clean way
- Greenhill hasn't done a notable M&A deal in years. Mizuho really isn't acquiring much of an "M&A" business
- As a top student / lateral talent, would you really want to have Mizuho on your resume?
Given the above, the smart talent at GHL should be running for the exits right now (while recruiters / the market still see them as GHL and not Mizuho). Summer interns and incoming FTs should be looking at lateral options before they even hit the desk
EDIT: Lots of downvotes from salty GHL employees. When the writing is on the wall, don't try to erase it...
And their UK TMT team was poached by Guggenheim before the Mizuho deal anyway… seriously struggle with the rationale here (other than for GHL retirees)
That’s the UK team.
yeh gugg lifted the group head, guy called PJ, and c.4 MDs
Incoming SA 2024 at GHL - It's about a year from now, but by looking at lateral options I'd assume still going through with doing the internship next summer and being prepared for FT recruitment for a FT 2025 start?
Yes. And this deal is advantageous to you because you won't have to beat around the bush about why you're trying to lateral elsewhere FT.
IDK why you are getting so much MS, you spit nothing but facts.
Most of the MDs at GHL are washed, but is Kevin Constantino still there? He's pretty sharp
He's still there - repping a sponsor for one of the deals im on
just have both on your resume
Your argument essentially amounts to "Mizuho isn't prestigious tho". Dumb. You guys don't seem to understand how banking works. Corporate clients & contacts don't share your juvenile hang-ups of only wanting to work for the banks that WSO say are most prestigious.
This. Corporations and sponsors don't give a flying fuck what name is on the deal tombstone, in fact they don't give a fuck about deal tombstones, league tables, or anything else like that. They just want a good relationships, good deals, and good service.
My sense is that Bok still misunderstands what GHL is today and was able to sell what GHL was to Mizuho. The firm is no longer a trusted advisor to large corporates but rather a (lower) middle market m&a boutique that has lost market share because most of the MDs are irrelevant. It seems that Mizuho bought the argument hook, line, and sinker that GHL has fallen off because they don’t have a balance sheet, when the truth is that the firm was wildly mismanaged by Bok and co.
Bok refused to pay for talent, only recently began to bank sponsors, and had a wildly out of market compensation structure which resulted in an adverse select issue at the MD level. In the 2000s GHL got the pick of the litter of MDs leaving big banks, but over the last 10 years external hires were either those who couldn’t cut it at big firms, were washed up, or came out of non name firms. While there are a few competent bankers, and another tier who are successful by Greenhill standards, the firm has no rainmakers.
Perhaps Mizuho can pump enough money into the platform to make it work, but I Greenhill’s roster bankers is not the horse I would bet on.
The deal also goes completely against Greenhill's selling point - being an independent advisory shop.
Why would I want to hire Greenhill at this point if I can just go to any of the other BBs?
what will the top shop in Chicago be now?
Mizuho lol
Prob Citi, Barclays, BAML, Blair, Baird
It’s jpm and ubs
This isn't looking good for attracting talent... the GHL brand is on the decline as it is but still eeks out some kids from decent schools.
Adding Mizuho to the mix is gonna turn GHL into a C tier recruiting spot. If I were an undergrad (or even an MBA), I'd have second thoughts about coming here now
Based on the press release, this doesn't look like it changes much for GHL - Greenhill is being kept as a separate entity and retaining it's branding, offices/employees and management, but supported by the Mizuho platform and balance sheet. Similar to Nomura Greentech it would appear. Net-net it also removes the distraction of the GHL stock price and term loan
Mizuho bulks up in the M&A space where they are very underweight today. They have made inroads in capital markets in the US but GHL's team should be quite complementary. Irrespective of how you view GHL’s franchise, there are some pockets of strength and the firm as a whole is better than Mizuhos current M&A franchise
There are a lot of precedents of combinations of specialized advisors and larger banks - Wasserstein/Dresdner, Gleacher/NatWest, PJ Solomon /Naxtis, KBW/Stifel, Greentech/Nomura, Sagent/Daiwa - and the track record is mixed. Time will tell
I heard that Nomura has not done a great job of running Greentech, fwiw. But there are market dynamics for that vertical hurting that biz, too.
Largely agree with the other points. Could be a good chance to clean up shop too. Lot of underperforming MD's at Greenhill and maybe this is a way to buy them out or otherwise gracefully show them the door. Adding a balance sheet capabilities likely will help as one of the issues was that Greenhill was subscale relative to the other pure advisory shops.
I talked to some contacts at Greenhill earlier and apparently the Mizuho M&A team is like, <6 people in the same building in NYC. I expect many of them got fat retention bonuses too.
Time will tell but I'm cautiously optimistic about what happens.
Wouldn’t imagine they’d keep their Rx practice due to conflict of interest.
They will be keeping Rx considering Scott Bok new title (via press release) is “Chairman of M&A and Restructuring Advisory”
With their increased balance sheet capability in US I’d imagine Mizuho will now be underwriting debt for a lot of their deals. Can’t imagine their Rx practice will exist.
GHL juniors coping hard in this thread. GHL is dead. I'm at another EB and all our seniors aren't surprised in the slightest
Selling to the Japanese is waving the white flag. Exit while you can before the Mizuho talent starts getting mixed in and dilutes your brand image
Greenhill selling itself was always the endgame with the maturity wall approaching, there’s just no way at they could refinance the debt to their liking the past few years. Greenhill’s been a vest and rest place for seniors for quite some time, they pay relatively high dividends that the seniors benefit from holding Greenhill stock, and the huge premium on this transaction rewards all the seniors a lot as well. I’d imagine that after the lock-up period of 3-5 years post acquisition we’ll see a lot of seniors retire.
Exactly. This is a retirement plan to (undeservedly) line the pockets of the guys at the top. Juniors lose out the most going forward
Yall are hating. They're keeping the same brand, team, offices, etc. and literally just getting resources & additional products to sell through Mizuho. People are like "Oh my god the absolute HORROR, the INHUMANITY of it all. Somebody hold me!"
Lol shut up. Banks fluctuate in performance over time constantly. Right now CVP is hot, before that it was all about Allen & Co. I haven't heard shit about Allen & Co. in like two years lol. Before that it was Rothschild and now it's quiet for them too. Especially the EBs tend to cycle through phenomenal, good and not so good years. A year ago everyone was riding Blair's dick, shit changed and now people hate it. Outside of reacting viscerally to the perceived lack of prestige of Mizuho, I can't see how the additional resources this deal gives them will hurt them as they figure it out and seek to grow a new generation of dealmakers. Hell, I'd join the team if I was looking and they were hiring.
OK Intern.
To anyone who knows anything about Greenhill, this move is objectively the check-mate move on Greenhill's long capitulation. Under Bok for some time now, Greenhill's been focusing on finding an exit strategy for the old guard of seniors, and the firm's strategy has reflected that. As the poster above noted, Greenhill's been a place for seniors to coast for some time now. Bok's kept the dividends high, even through the tumultuous 2017/2018 period when outsiders heavily criticized him for doing so, because over half of Greenhill's stock is owned by the firm's employees, so the seniors have been able to make a killing off of holding stock despite not generating revenue. Bok's also long given up on ambitious plans to grow in favor of preserving the firm's cash position (Greenhill refuses to offer guaranteed comp packages to poach seniors). In 2017/2018, Greenhill borrowed over $300m in order to buyback stock to further reward its seniors, and that debt level has made the long-term independent operation of the firm absolutely impossible (senior management's plan has always been to find a buyer rather than repaying or refinancing its debt). A lot of Greenhill's top seniors have left over the past few years (eg. most recently Gelwix - one of the top performers at the firm - leaving for Solomon Partners), and the firm hasn't replenished its talent bench effectively. In effect, this acquisition has allowed for Bok and his clique to secure a lucrative pay package and a lot of Greenhill's current team will be retiring right after the lock-up period ends.
Exactly, over his tenure as CEO Bok has had zero ambition to build Greenhill into a lasting franchise and his strategic moves have been questionable at best (keeping Greenhill's dividend even when the firm was near-bx in late 2017, doing $300m of share buybacks, refusing to make guaranteed comp packages, not expanding into sponsor coverage until it was too late).
God damn, put another point on the board for the Boomers for absolutely BONING everybody and getting themselves paid once again. Salute.
.
Thanks intern
Get ready to learn Japanese buddy
Absolute highway robbery by Bok...getting Mizuho to pay $550m for effectively 10 productive MDs and 60 seniors generating little to no revenue.
Bok and his crew of tenured MDs get to retire after a decade of pathetic performance.
The career trajectories for everyone from directors down to analysts are screwed. Someone tell me how you can build a brand / career using Mizuho of all names as a platform?
The seniors worth a damn aren’t going to lose the relationships they already have and their reputations are going to remain intact. Investment banking is a commodity and 90% of clients are going to keep working with the guys they have worked with in the past. I don’t care if they get acquired or if they go a bank called rainbow unicorns as long as they can give me the work I need.
There’s about a dozen good MD’s at greenhill, and if mizuho is smart (or to put it bluntly, not retarded) they will have given those guys fat ass retention packages to keep them around as they represent most of the franchise value of the business.
He effectively double dipped. Swept value out of the business and borrowed money to pay fat dividends and buy stock back for the good ole boys for YEARS before turning around and re-monetizing the equity. Almost like doing a soft-core div recap and then getting a windfall on imputed equity afterwards. Well, not totally like that but you get it.
Can’t other businesses in non financial sectors essentially do this as well?
Advice for incoming FT analyst to Chicago GHL office?
All incoming analysts should start networking and getting ready to lateral out (to a better EB or BB) by the end of first year. A lot of analysts at GHL did this during COVID (and placed very well).
GHL still has a great brand and training program - just don't get caught stuck on the sinking ship when the Mizuho integration really kicks in.
Well, looks like I’m hitting the prep books and network log again! How long do you think I have before the Mizuho integration really kicks in?
Find a new job
:(
Seems like Bok did well for himself.
Genuinely thought Mizuho was the same company that makes baseball gloves (srs)
That would be mizuno but lol
I know. I thought they were the same until like last week. Even the logos are the same. I thought Mizuno was just some major Japanese conglomerate that made baseball mitts, running shoes, and dabbled in m&a advisory
Mizuho will now be #1 in propane investment banking by a mile
GHL's elevator music:
Y'all are laughing, but way back when Bank of America wasn't even an investment bank.
Very true but this isn't exactly equivalent to bolting a top standalone full-service investment bank onto a top commercial bank / lending platform. Merrill Lynch was a very solid middle bulge with a liquidity issue. Greenhill is a small, zombie advisory boutique.
Greenhill was one of the firms I made it to a final round/super day back in the day when I was recruiting out of undergrad (ignore the title in my profile, I'm old)
This was well over a decade ago, so my memory of that day is imperfect, but I distinctly remember all the bankers I met with at Greenhill had the biggest bags under their eyes (severe sleep deprivation) and this is saying something considering I met a lot of bankers at many firms during that period.
Anyways, didn't mean to reminisce, back to the present - all those "R.I.P." (retired in place) senior bankers should be gone by 2025
this is like Kmart buying Blockbuster
Great for Seniors with stock.
Terrible for juniors.
Greenhill will see an exodus of the remaining good juniors that haven't already left for better homes.
Greenest bank ever. LEED certified deal
All analysts must lateral or you’re pretty screwed. Having Mizuho on your resume is basically a death sentence
Greenhill still has very strong buy side placement regardless of their recent deal flow.
Can confirm their placement is very good
Do you think it'll remain good? Incoming SA 2024 and stressed to the bone
Mizuho is an Elite Bulge Bracket Boutique
An EBBB
Do we know how scott bok was never fired? Seems like he did a terrible job as ceo. And also why greenhill never fired these mds who were not producing? Was it because scott bok wanted to take care of them because they are friends?
The company is only public in a nominal sense. Bok and Greenhill own 25% or so. Employees own another 30%. The board is not truly independent, stacked with ex-employees and management. Most of the non-producing MDs are friends of Scott or Kevin.
I work fairly with Mizuho power and utilities franchise, and there appears to be talented folks there. Also think highly of Mizuho 's Project Finance franchise
I'm in PE
Hahah ok intern
Quia provident maiores exercitationem sint maxime ex. Sed qui ratione quaerat. Unde consequatur cupiditate quam adipisci voluptas. Eum aut itaque est fugiat praesentium amet. Ratione excepturi asperiores voluptatem ut.
Quia accusamus excepturi quasi nihil consequatur et. Dolorem nam voluptatem necessitatibus perferendis ut non. Eaque qui dolores velit inventore quibusdam possimus.
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...
Dolores et itaque dolorum. Qui ea harum autem qui sed blanditiis libero.
Maxime consequatur labore et nemo excepturi magni est. Voluptatum recusandae accusamus qui aut autem sed. Qui non aut ipsa occaecati nihil.
Aut id qui quia. Voluptatum sit dolorem ipsa voluptas ut inventore. Nihil deserunt sint non ab reiciendis. Enim laudantium iusto consequatur sit. Saepe voluptatem in accusamus dolores. Voluptatem eveniet consequatur sunt est quia et numquam id. Maiores blanditiis quo sed voluptatum atque quia non.
Odio aut omnis et aperiam et est. In corporis est vel minus. Consequatur vero rerum ipsa.
Tempora consequatur est fuga aut illum culpa minus ducimus. Sed ratione in eos eligendi cumque dignissimos. Perferendis autem esse quis nulla. Eum architecto ut ut quo.
Quia facilis ipsa consequuntur quo est. Optio occaecati nesciunt ex nobis illum corporis et ipsa. Nihil est quia adipisci explicabo sit autem. Vel eveniet voluptatem qui alias suscipit totam corporis. Reiciendis repudiandae officiis ducimus eligendi repudiandae. Consequatur voluptatem ipsa veniam quo et itaque.