- HLI benefits as others do in the financial advisory space from the hot M&A market.
- However, they have a major restructuring franchise that has been suffering on its own within the mix.
- While the going is good for HLI for now and the restructuring franchise relevant, PJT is a more opportune play for a downcycle.
- HLI would still suffer in a downcycle despite restructuring, and its current multiple is very much built on the boom continuing a while. We wouldn't risk it.
For further details see:
Houlihan Lokey's Restructuring Is Not Enough Of A Hedge In A Downcycle