Houlihan Lokey

1970s

Houlihan Lokey was founded in Los Angeles in 1972 as a provider of general business advisory services to privately held companies. The 1974 passage of the Employee Retirement Income Security Act launched the firm’s valuation business by creating demand for independent valuations of private businesses, particularly those that had formed employee stock ownership programs.

1980s

In 1986, Kenneth Friedman founded and became President of Houlihan Lokey’s investment banking broker dealer to provide M&A advisory services and to raise debt and equity financing. Friedman formed the investment bank to provide Wall Street level expertise to the expanding investment banking demands of Houlihan Lokey’s clients and other middle market companies. By 1987, many of the highly leveraged transactions completed earlier in the decade were starting to exhibit signs of financial distress. Accordingly, a market was developing for financial restructuring advisory services. To position itself to serve this burgeoning market, the investment banking broker-dealer purchased Cheviot Capital Corporation in 1987 and, led by Jeff Werbalowsky and Irwin Gold, began assembling what would become an active, dominant, worldwide financial restructuring group.

With the surge of mergers, acquisitions, and leveraged buyouts, Wall Street’s large investment banking firms began calling on Houlihan Lokey for independent valuation expertise in fairness, solvency, and employee stock ownership plan (ESOP) opinions. The firm advised on transactions valued at more than $100 billion during this period. The firm also started to offer estate planning valuation services. In addition, the firm opened several offices in the 1980s in New York City, San Francisco, and Chicago.

1990s

Houlihan Lokey opened eight offices across the U.S. in the 1980s and 1990s as it expanded. In 1995, to grow its information services division, Houlihan Lokey acquired Mergerstat, a publishing company with a 30-year history in analytical M&A research, from Merrill Lynch.

2000s

In 2001, Houlihan Lokey launched its first non-U.S. office by expanding into London. It also expanded its industry group platform and private equity coverage program in keeping with investment banking trends.

In 2002, Houlihan Lokey advised the official creditors committees in three large bankruptcies: WorldCom, Enron, and Conseco.

In 2005, the firm opened a Paris office.

In 2006, the firm opened a Frankfurt office. Also in 2006, Houlihan Lokey agreed to merge with ORIX USA, the U.S. corporate lending operations of ORIX Corp. of Japan, to address the growing international demand for middle-market investment banking services.

In 2007, Houlihan Lokey expanded into Asia, opening offices in Hong Kong and Tokyo. Within the next three years, the firm also opened an office in Beijing.

In 2008, Houlihan Lokey advised the creditors of Lehman Brothers.^[5]

2010s

In 2010, Houlihan Lokey bought a sizable minority stake in Avista Advisory Group, a then decade-old advisory group. This gave the firm offices in both Mumbai and Singapore.^[6]

In 2013, Houlihan Lokey expanded its Financial Institutions Group through the acquisition of Milestone Advisors.^[7] The firm also launched the Illiquid Financial Assets practice to advise on the sales of assets such as stakes in loan pools, life settlements, minority positions, pharmaceutical royalties, and operating leases.^[8]

In 2014, Houlihan Lokey strengthened its capabilities and coverage for clients across the technology sector with the acquisition of ArchPoint Partners.^[9]

In 2015, Houlihan Lokey acquired management consulting firm Bridge Strategy Group,^[10] digital media and entertainment focused investment bank MESA Securities,^[11] London-based consumer-focused firm McQueen Ltd.,^[12] and operations of the Continental European investment bank Leonardo & Co.^[13] Also in 2015, Houlihan Lokey acquired the investment banking operations of Leonardo & Co. NV in Germany, the Netherlands, and Spain, and became a minority partner in a joint venture with the management team of Leonardo in respect to Leonardo’s investment banking operations in Italy. This gave the firm offices in both Rome and Milan.^[14] On August 13, 2015, Houlihan Lokey completed its initial public offering, beginning trading as HLI on the NYSE.^[15]

In January 2017, Houlihan Lokey acquired Black Stone IP, a leader in Tech+IP advisory work.^[16]

In January 2018, Houlihan Lokey acquired Quayle Munro Limited, an independent advisory firm focused on providing corporate finance advisory services to companies in the data & analytics sector.^[17] In May 2018, the firm acquired BearTooth Advisors, an independent advisory firm that provided strategic advisory and placement agency services to alternative investment managers.^[18]

Financial restructuring

The financial restructuring team has approximately 200 professionals worldwide, and every assignment is staffed with professionals who facilitate the completion of due diligence and analysis. Houlihan Lokey has advised several extremely complicated deals, and between 2007 and 2017 the firm advised on more than 1,000 restructuring transactions, with aggregate debt claims in excess of $2.5 trillion, including the five largest of all time: Lehman Brothers, Washington Mutual, WorldCom, General Motors and CIT Group.

Corporate finance

Corporate finance is best known for offering mergers & acquisitions and capital markets advisory services. The firm has advised public and private institutions on buy-side and sell-side transactions as well as leveraged loans, private mezzanine debt, high-yield debt, IPOs, follow-ons, convertibles, PIPEs, private equity, and liability management transactions. The company has also developed an expertise in advising financial sponsors on all types of transactions, effectively creating one of the largest financial sponsors groups on Wall Street.

Financial advisory services

This division offers opinion services, transaction & valuation reporting services, real estate valuation & advisory, portfolio valuation, and financial consulting to company owners, managers, and special committees in their interactions with auditors and regulators.

Strategic consulting

This division helps clients learn their options for delivering greater shareholder value, identify and capitalize on opportunities outside of traditional business models, find operating efficiencies and accelerate profitable growth, and uncover possible strategic alliances that enhance go-to-market strategies.