Here are a few analogies to describe Houlihan Lokey:

• Think of them as the independent, highly specialized financial advisory arm you'd find at a major investment bank like Goldman Sachs or Morgan Stanley, focusing on complex corporate transactions such as mergers & acquisitions and financial restructurings.
• They are like an elite corporate financial consulting firm, similar to McKinsey & Company or Boston Consulting Group, but solely dedicated to advising companies and investors on significant financial events like buying/selling businesses, raising capital, or navigating financial distress.

• Mergers & Acquisitions (M&A) Advisory: Advising clients on both buy-side and sell-side transactions for public and private institutions.
• Capital Markets Advisory: Providing guidance and solutions for raising capital through various instruments including debt, equity, and private placements.
• Financial Restructuring Advisory: Advising debtors, creditors, and other stakeholders on recapitalization, deleveraging, and reorganization strategies.
• Valuation Services: Offering independent valuations of companies, securities, intellectual property, and other assets.
• Financial Opinions: Providing fairness opinions for M&A, solvency opinions for corporate actions, and other financial assessments.
• Dispute Resolution Consulting: Offering expert testimony and consulting services for complex financial and valuation-related disputes.

Houlihan Lokey (HLI) primarily serves other companies and institutions rather than individuals. Due to the project-based nature of investment banking and client confidentiality, specific names of major customer companies are generally not publicly disclosed.

However, based on the company description, Houlihan Lokey's major customer categories include:

• Corporations: This broad category encompasses publicly-held corporations, multinational corporations, and privately-held companies. They seek advisory services related to mergers and acquisitions (M&A), capital markets (e.g., leveraged loans, IPOs, private placements, liability management), financial restructuring, and general financial advisory.
• Financial Sponsors: These are institutional investors such as private equity firms, hedge funds, and other asset managers. They engage in corporate transactions and require specialized advisory services for buy-side, sell-side, financing, and valuation needs related to their investments.
• Government Agencies and Other Institutional Clients: This segment includes government agencies utilizing financial and valuation advisory services, as well as a diverse group of institutional parties such as debtors, creditors, and other stakeholders involved in complex financial restructuring, corporate viability assessments, dispute resolution, and expert testimony scenarios.

Scott J. Adelson, Chief Executive Officer

Scott J. Adelson has served as Houlihan Lokey's Chief Executive Officer since 2024. Prior to this role, he was Co-President from 2013 to 2024 and a Senior Managing Director in the firm's Corporate Finance business since 2002. As a long-standing member of the firm's leadership, Mr. Adelson has been responsible for strategic planning, client relations, business development, and overall firm management, working within the Office of the Executives.

J. Lindsey Alley, Chief Financial Officer

J. Lindsey Alley has served as Houlihan Lokey's Chief Financial Officer since December 2012. In this capacity, he oversees the firm's accounting, tax, financial reporting operations, acquisitions, and investor relations. Mr. Alley joined Houlihan Lokey in 1995 as an investment banker, advising public and private clients on buy-side and sell-side mergers and acquisitions. Before joining Houlihan Lokey, he was employed by Chemical Securities, Inc., where he focused on financing leveraged acquisitions and private equity placements through Chemical Venture Partners – Northeast. He began his career in the fixed income research division of J.P. Morgan Securities.

Scott L. Beiser, Co-Chairman

Scott L. Beiser is Co-Chairman of Houlihan Lokey and has served on its board of directors since 1991. He previously served as the firm's Chief Executive Officer. His responsibilities as CEO included managing Houlihan Lokey's operations, identifying new strategic opportunities, and managing client relationships. Mr. Beiser also led Houlihan Lokey's Infrastructure Services and Materials practice, specializing in investment banking services for engineering and construction businesses, including corporate acquisitions, divestitures, and leveraged recapitalizations. Before joining Houlihan Lokey, he was a Senior Financial Analyst at Transamerica Occidental Life Insurance Co., where he supervised the budget and forecasting department.

Irwin N. Gold, Co-Chairman

Irwin N. Gold is Houlihan Lokey's Co-Chairman and Executive Chairman, having served on the board of directors since 1994. He is a senior executive responsible for strategic planning, client relations, and business development. Mr. Gold co-founded the firm's Financial Restructuring business, which is a leading industry practice, and was its Global Co-Head from 1988 until 2012.

Shaun Browne, Managing Director, Chairman of Consumer, Europe

Shaun Browne is a Managing Director and Chairman of Consumer, Europe, at Houlihan Lokey, and Co-Head of European Corporate Finance. He works across all industry teams and with the Finance Sponsors and Capital Solutions groups. Mr. Browne co-founded McQueen, a London-based investment bank focused on the consumer sectors, in 2002. McQueen grew to be a highly successful M&A advisor to the European consumer sector before its acquisition by Houlihan Lokey in 2015. Prior to McQueen, he co-founded the Consumer M&A team at HSBC and served as CEO of HSBC Investment Bank in India from 1996 to 1999, where he established their investment banking arm.

The key risks to Houlihan Lokey's business are primarily linked to the cyclical nature of the financial markets and the reliance on key talent for its advisory services.

1. Deal-flow Cyclicality and Economic Downturns: Houlihan Lokey's performance is significantly influenced by the overall health of the M&A market and broader economic conditions. A slowdown in M&A activity, whether due to economic struggles, interest rate hikes, or global shocks, could substantially reduce the firm's fee streams. Investment banking services, particularly corporate finance and capital markets advisory, are highly sensitive to economic cycles, and a prolonged downturn can lead to a decrease in the volume and size of transactions. While its financial restructuring segment can provide some counter-cyclical hedge during economic difficulties, a severe or prolonged contraction in deal flow across all segments would negatively impact the company's revenue and profitability.
2. Key-Person Risk and Talent Retention: As an advisory-focused investment bank, Houlihan Lokey's business model heavily relies on its talented professionals and their relationships. The loss of key dealmakers, especially within its Corporate Finance and Financial Restructuring divisions, could impact the firm's performance, reputation, and transaction volume. The ability to attract and retain experienced employees is crucial for its continued competitiveness and success in the industry.
3. Regulatory and Compliance Risks: Houlihan Lokey operates in a highly regulated industry both domestically and internationally. The extensive and evolving regulatory environment poses a continuous risk, as non-compliance can lead to significant legal penalties, financial losses, and reputational damage. Changes in policy, such as antitrust crackdowns or new rules for cross-border deals, could also dampen advisory volumes or compress profit margins.

The increasing sophistication and adoption of Artificial Intelligence (AI) and advanced automation in financial services.

Houlihan Lokey (HLI) operates in several key financial advisory markets globally. Here are the estimated sizes of the addressable markets for its main products and services:

Merger and Acquisition (M&A) Advisory

The global M&A advisory market size was estimated to be in the range of USD 15.0 billion to USD 35.0 billion by 2026. Other estimates place the global M&A advisory market at approximately USD 27.95 billion in 2024, projected to reach USD 34.80 billion by 2033, with a compound annual growth rate (CAGR) of 2.5% from 2025 to 2033. North America, particularly the United States, represents the largest and most dynamic market for M&A advisory services globally, with the U.S. accounting for 38% of the global market share in 2023.

Financial Restructuring Advisory

The global financial restructuring advisory market was estimated at approximately USD 50 billion in 2025. It is projected to grow to about USD 95 billion by 2033, at a CAGR of 8% from 2025 to 2033. North America and Europe are expected to retain significant market shares in this sector. Another source projects the global capital restructuring service market to reach USD 146.68 billion by 2032, exhibiting a CAGR of 8.39% from 2024 to 2032.

Financial and Valuation Advisory Services (including Valuations, Fairness Opinions, and Solvency Opinions)

The global valuation advisory market was valued at approximately USD 4.5 billion in 2023 and is expected to reach around USD 7.9 billion by 2032, growing at a CAGR of 6.5%. Another estimate places the global valuation advisory market at approximately USD 12.8 billion in 2024, projected to reach USD 21.7 billion by 2033, growing at a CAGR of 6.0%. North America holds the largest share of the valuation advisory market.

Corporate valuation services, a component of financial and valuation advisory, were valued at USD 2.43 billion globally in 2024 and are projected to grow to USD 3.58 billion by 2032, at a CAGR of 5.8%. Fairness opinions and solvency opinions are critical services within the broader valuation advisory market. Houlihan Lokey is consistently ranked as a top provider in the Fairness Opinion market.

Capital Markets Services

While specific global market size figures for "Capital Markets Advisory Services" as a standalone category were not consistently provided with explicit dollar values in the search results, these services are encompassed within the broader "Financial Advisory Services" market. The global financial advisory services market was valued at USD 103.01 billion in 2024 and is estimated to grow to USD 174.33 billion by 2033, at a CAGR of 6.02% from 2025 to 2033. North America dominated this market in 2024. Another report indicates the global financial advisory market size was USD 219.48 billion in 2025 and is projected to reach USD 291.61 billion by 2030, at a CAGR of 6.2%.

Here are 3-5 expected drivers of future revenue growth for Houlihan Lokey (HLI) over the next 2-3 years:

1. Re-acceleration of M&A Activity and Improving Corporate Finance Market: Houlihan Lokey anticipates a rebound and re-acceleration of M&A deal-making activity in 2026 and beyond. This is supported by factors such as a strong backlog of deals, particularly those aged six years or older, which are facing pressure to transact, as well as excellent debt availability. The company's Corporate Finance segment has already demonstrated strong revenue growth and new business generation, benefiting from an improving M&A environment and increasing activity levels. Analysts project Houlihan Lokey's revenue to grow by 12.5% annually over the next three years, partly driven by active corporate finance engagements and increased private equity deal flow.

2. Continued Strength and Market Leadership in Financial Restructuring: Despite some anticipated short-term revenue pressures, Houlihan Lokey's Financial Restructuring segment is expected to remain a significant revenue driver. The firm's restructuring business is viewed as resilient and a natural hedge against macroeconomic uncertainties, supported by persistently higher interest rates and overleveraged companies. Houlihan Lokey maintains a leading position globally in financial restructuring, advising on a high volume of distressed debt and bankruptcy deals.

3. Strategic Acquisitions and Global Expansion: Houlihan Lokey is actively pursuing strategic acquisitions and expanding its global footprint, particularly in Europe. These initiatives are aimed at strengthening its corporate finance capabilities, diversifying its service offerings, and increasing its market reach. The firm's strategy includes hiring senior talent globally and integrating new businesses, such as the acquisition of Mellum Capital's real estate advisory business and Quayle Munro for data and analytics, which contribute to its growth trajectory.

4. Expansion of Capital Solutions and Development of New Products/Services: The company is focused on building out its Capital Solutions capabilities, which is seen as a key strategic direction for future growth. Additionally, Houlihan Lokey is exploring and highlighting potential monetization opportunities from new offerings, such as its data bank product, which can provide additional revenue streams.

5. Sustained Market Share Gains, particularly in the Middle Market: Houlihan Lokey has consistently been recognized as a top M&A and financial restructuring advisor by volume, especially within the middle-market segment. The firm's sustained strategy of expanding its team and deepening its sector-specific coverage has enabled it to continue capturing market share, which is expected to contribute to ongoing revenue growth.

Share Repurchases

• In late January 2026, Houlihan Lokey completed a share repurchase program totaling US$221.73 million.
• During the third quarter of fiscal year 2026 (ended December 31, 2025), approximately 418,000 shares were repurchased as part of its share repurchase program.
• Repurchases of common shares amounted to USD 90.1 million in 2025.

Share Issuance

• On February 25, 2026, Houlihan Lokey filed a prospectus supplement for the potential resale of up to 4,009 Class A shares, issuable upon conversion of Class B shares granted to former members of Waller Helms Advisors after meeting post-closing performance targets.
• The company's filing also covered the potential resale of up to 28,412 Class A shares, issuable upon conversion of Class B shares held by former owners of 7 Mile Advisors, following its December 2023 acquisition and the achievement of performance milestones in December 2025 and January 2026.
• These share issuances demonstrate Houlihan Lokey's approach to using stock as a component of payment for acquisitions and as incentives tied to post-closing performance results.

Outbound Investments

• On January 20, 2026, Houlihan Lokey announced an agreement to acquire a controlling interest in Audere Partners, a prominent French corporate finance firm, which is expected to significantly enhance its presence in France and add over 50 finance professionals.
• In early January 2026, the firm acquired the real estate capital advisory business of Mellum Capital, with operations in Munich and London, integrating 11 professionals and bolstering its capital solutions capabilities.
• Houlihan Lokey acquired 7 Mile Advisors in December 2023.

Capital Expenditures

• In the third quarter of fiscal year 2026 (ended December 31, 2025), Houlihan Lokey invested $639,000 in capital expenditures, representing a 71.4% decrease from the prior quarter.