- With bankruptcies and other financial troubles seeming to slow, HLI is guiding for reduced restructuring revenue.
- Rest of the businesses are buoyed by the liquidity environment.
- We think restructuring is a nice offset for if the variants badly hurt the economy again, but we also agree with the GCA acquisition leaning into markets levered to liquidity.
- With all likely outcomes, be it economic decline or boom, leading to environments that will support liquidity, the current price makes sense.
- However, the price is at best fair and not compelling.
For further details see:
Houlihan Lokey Will Be Sustained By Trigger-Happy Central Banks