Houlihan Lokey Exit Opps

bala11's picture
Rank: Senior Chimp | 23

hey guys, do you know where Houlihan Lokey ranks relative to other investment banks? that is, how prestigous is it, how are the exit opps, etc. i know its "highly selective and prestigous" according to vault, but the impression i get from other people that Houlihan varies greatly...any ideas?

Comments (17)

Jul 10, 2007

Okay just kidding. Houlihan is a good middle market IB. Their rep is for restructuring.

Exit opps? Probably into a BB from HLHZ. I know plenty of ppl who have done that. U'll probably get better analyst experience as far transactions and things go since they are a lot smaller than other firms.

Keep in mind, it depends on the kinds of exit opps you want. Carlyle type funds might be out of your reach (unless u go to HLHZ into a BB, get top bucket, be a networking whore, click with the interviewers, convince them ur better than someone with the pedigree, etc.)

Mid Market Funds probably is the fit (never worked in a MM, so maybe you don't want to go by me).

Its a got a good rep..my 2 cents.

Hopefully someone can provide more info to u.

I'm making it up as I go along.

Jul 11, 2007

HLHZ is not strictly for restructuring. As far as M&A activity is concerned: They actually lead the market in number of middle market transactions valued from 100 - 200 mm from 1/1/05 - 6/27/07 with 31 deals. UBS is second with 22, and Citi is third with 16.

As far as deals 200 - 500 mm, they are less dominant but still in the top 10 (9th to be exact with 20 deals)

HLHZ is good at what they do, and that is dominate the lower end of the MM.

    • 1
Jul 13, 2007

haha, sounds like you just copied and pasted from one of your pitchbooks.

Jul 17, 2007
slickmac:

HLHZ is not strictly for restructuring. As far as M&A activity is concerned: They actually lead the market in number of middle market transactions valued from 100 - 200 mm from 1/1/05 - 6/27/07 with 31 deals.

This is awesome, straight out of a pitchbook indeed. I also believe they lead in number of deals valued from 116-171mm between 4/14/06 and 4/11/07 for healthcare and telecommunications deals (excluding wireless transactions) that close on the first Tuesday of those months that begin with a vowel.

Jul 13, 2007

i did 2 years as an analyst at houli and can tell you i barely touched restructuring. restructuring is a dedicated group, and unless you are assigned there, you actually do not spend much time there at all.

having said that, your experience will still be slightly different because a) houli does not do equity deals and b) you will instead work on a good deal of valuation and fairness opinion work, which will give you some somewhat extraordinary cash flow modeling skills, but often at the expense of leverage buyout modeling skills

Jul 14, 2007

From what I've ever heard, it really depends on what group you are in. Restructuring and ADG both give solid experience which can take you places.

Jul 15, 2007

if you're gonna do restructuring, why not aim for blackstone (which handled the enron bankruptcy) instead of some third tier shop like houlihokey.

    • 1
Jul 16, 2007

As far as I know, HLHZ still doesn't do underwriting. That said, they are well-known for providing fairness opinions.

Jul 16, 2007

Basically, certain groups at HLHZ have good reps, others do not. But from what I gather, fairness opinions are handled by a division outside of M&A and Restructuring altogether. I believe it's called FAS (Financial Advisory Services) or something along those lines.

If you work in a solid group (ADG, Restructuring, Financial Sponsors) you will have a good shot at middle market PE and the like. People can come in here and hate all they want, but the fact is is that HLHZ is a very strong MM shop with strengths and weaknesses.

Jul 16, 2007

i believe hlhz was retained by the Paris group to help restructure the iraqi debt.

Jul 16, 2007

Montecarlo, do your research before just spouting off. While Blackstone worked on the debtor side of the Enron deal - HL handled the creditor side. Also, the restructuring group has worked on some if the largest bankruptcies in U.S. history including WorldCom, Tyco, Global Crossing, Delphi, Refco, Delta, Adelphia, etc. and is widely considered one of the top restructuring houses in the world.

Jul 16, 2007

aver, let me guess, you work at houli?

Jul 17, 2007
montecarlo7:

aver, let me guess, you work at houli?

eeegghhhh my bank is better than yours eeeggghhhhh

Jul 17, 2007

Guilty.... But, what is the point in doing the research if I cannot use it to enlighten the ibankingoasis community? However, I am not an employee of HLHZ, so it was actually not from a pitchbook but rather a bit of research I put together for my group head.

Oct 11, 2007

Exit opps arnt good. BB is better, or if you like the boutique feel - jump to a bank where you can put bigger/better deals on your resume

  • justanotherbanker
  •  Oct 15, 2007
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