Houlihan Lokey

To deliver superior outcomes for clients by becoming the undisputed global leader in middle-market investment banking.

Houlihan Lokey SWOT Analysis

Updated: October 3, 2025 • 2025-Q4 Analysis

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This analysis for Houlihan Lokey was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

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This Houlihan Lokey SWOT analysis reveals a firm at a pivotal juncture. Its dominance in restructuring and mid-market M&A provides a formidable foundation. However, its success is tethered to cyclical markets and threatened by escalating talent wars and technological disruption. The primary strategic imperative is to leverage its brand and data moat to pivot towards more stable, high-growth areas. The firm must aggressively expand into private capital advisory, institutionalize cross-selling, and weaponize its data with AI to build a more resilient, future-proof business model. The path to sustained leadership requires transforming from a collection of elite practices into a unified, tech-enabled advisory platform. This evolution is critical to not just surviving but thriving in the next decade of financial services, ensuring Houlihan Lokey remains the preeminent advisor in its chosen markets.

Evercore Lazard Moelis & Company PJT Partners Jefferies Financial Group

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To deliver superior outcomes for clients by becoming the undisputed global leader in middle-market investment banking.

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Strengths

RESTRUCTURING: #1 global ranking provides counter-cyclical revenue stream.
DEAL VOLUME: Dominant share of U.S. mid-market M&A deals builds data moat.
DIVERSIFICATION: Growing FAV segment provides stable, recurring revenues.
BRAND: Elite reputation for handling complex, high-stakes situations.
BALANCE SHEET: Strong cash position allows for strategic talent acquisition.

Weaknesses

CYCLICALITY: Corporate Finance revenue highly sensitive to economic cycles.
COMPENSATION: Rising comp ratio pressures margins, especially in downturns.
SCALE: Limited ability to advise on mega-deals vs. bulge-bracket banks.
TECH DEBT: Legacy internal systems hinder data integration and AI adoption.
CROSS-SELLING: Inconsistent collaboration between different service lines.

Opportunities

PRIVATE CAPITAL: Explosive growth of private credit/equity creates new needs.
INDUSTRY FOCUS: Expand into high-growth verticals like tech and healthcare.
CROSS-SELLING: Huge untapped potential to sell FAV services to CF clients.
GEOGRAPHIC: Expand footprint in emerging but high-growth international mkts.
SUSTAINABILITY: Growing corporate demand for specialized ESG advisory svcs.

Threats

INTEREST RATES: Persistent high rates suppressing M&A and capital markets.
COMPETITION: Intense fee pressure from both elite boutiques and large banks.
TALENT WAR: Private equity and hedge funds actively poach top performers.
AI DISRUPTION: Automated platforms threatening traditional advisory models.
REGULATION: Increased scrutiny on conflicts of interest in advisory roles.

Key Priorities

DOMINATE the rapidly expanding private capital advisory services market.
ACCELERATE technology and AI adoption to create differentiated insights.
EXPAND high-margin, less cyclical advisory services like FAV and ESG.
SYSTEMATIZE cross-selling to deliver the entire firm to every client.

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Houlihan Lokey OKR

Updated: October 3, 2025 • 2025-Q4 Analysis

The Houlihan Lokey OKR plan is a focused and potent blueprint for future growth. It wisely prioritizes the most significant opportunities—private capital and tech enablement—while reinforcing the core business through diversification and internal synergy. The objectives are aspirational yet grounded in the SWOT's conclusions, creating a clear 'why' for the team. The key results are largely outcome-driven, translating strategic priorities into measurable execution. This plan rightly shifts focus from merely navigating market cycles to actively shaping the firm's destiny, building a more resilient and dominant advisory platform for the years ahead.

Evercore Lazard Moelis & Company PJT Partners Jefferies Financial Group

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To deliver superior outcomes for clients by becoming the undisputed global leader in middle-market investment banking.

OWN PRIVATE CAPITAL

Become the undisputed leader in private capital advisory.

PIPELINE: Build a qualified advisory pipeline of $50B from private credit and equity sponsors this year.
GROWTH: Increase private capital advisory revenue by 40%, making it our fastest growing practice area.
TEAM: Hire a dedicated team of 10 senior bankers focused exclusively on the private capital market.
WINS: Secure lead advisor roles on 15 private capital transactions with top-tier sponsor clients.

ADVISORY REIMAGINED

Leverage technology to deliver unparalleled client insights.

PLATFORM: Deploy an internal AI-powered market intelligence platform, achieving 90% adoption by bankers.
EFFICIENCY: Reduce average time spent on initial valuation modeling by 30% through new automated tools.
CLIENTS: Launch a real-time deal-tracking dashboard for all M&A clients, boosting client satisfaction.
SKILLS: Certify 80% of associates in advanced data analytics to enhance the quality of their insights.

EXPAND THE MOAT

Grow our most profitable and defensible business lines.

REVENUE: Increase non-cyclical FAV revenue to constitute 35% of the firm's total advisory revenue.
ESG: Launch a dedicated ESG advisory practice and secure 8 new client mandates in the first 12 months.
SECTOR: Grow the Valuation Advisory client base in the high-margin technology sector by 20% this year.
RANKING: Achieve the #1 ranking for fairness opinions provided in U.S. public company transactions.

UNIFY THE FIRM

Deliver the full power of the firm to every client.

REFERRALS: Increase qualified, revenue-generating internal referrals between CF, FR, and FAV by 50%.
INCENTIVES: Launch a new cross-divisional bonus pool tied to successful collaborative engagements.
CRM: Achieve 95% compliance on logging all client interactions in the CRM to identify opportunities.
WINS: Source 25% of all new engagements from proactive, data-driven cross-selling initiatives.

METRICS

Advisory Revenues: $2.1B
Adjusted Operating Margin: 25%
Number of Completed Transactions: 1,100

VALUES

Client-Centricity
Excellence
Integrity
Intensity
Teamwork

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Houlihan Lokey Retrospective

AI-Powered Insights

Claude

Gemini

GPT

Houlihan Lokey Investor Relations Website (Q3 2024 Earnings Report)
Official Company Website (hl.com)
Refinitiv League Tables (M&A and Restructuring Rankings)
Public statements and interviews from CEO Scott Beiser
Industry analysis reports on Investment Banking and Financial Advisory

Evercore Lazard Moelis & Company PJT Partners Jefferies Financial Group

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To deliver superior outcomes for clients by becoming the undisputed global leader in middle-market investment banking.

Toggle Theme

What Went Well

RESTRUCTURING: Maintained #1 market position, capturing key mandates.
FAV: Segment delivered stable and predictable revenue, offsetting CF dip.
COSTS: Proactively managed non-compensation expenses during the slowdown.
SHARE: Gained M&A market share in a declining overall market.
HIRING: Used market softness to strategically hire key senior bankers.

Not So Well

M&A REVENUE: Corporate Finance segment saw significant decline year-over-year.
MARGINS: Compensation ratio increased due to lower revenue on a fixed base.
OUTLOOK: Cautious guidance provided due to macroeconomic uncertainty.
GLOBAL: European deal flow was particularly weak compared to U.S. markets.
CAPITAL MARKETS: Advisory work in this area remained severely depressed.

Learnings

DIVERSIFICATION: The firm's multi-service model is a critical strength.
AGILITY: Must be able to scale costs up and down with market cycles.
COUNTER-CYCLICAL: Restructuring is key, but can't fully offset M&A drops.
TALENT: Investing in top talent during downturns pays off in the recovery.
CLIENTS: Deep relationships are vital for securing mandates in tough times.

Action Items

PIPELINE: Double down on M&A pipeline generation for the market rebound.
PRIVATE CREDIT: Launch a dedicated initiative to target private credit funds.
INTEGRATION: Accelerate efforts to integrate recent acquisitions and hires.
TECHNOLOGY: Pilot an AI tool within one industry group to prove ROI.
CROSS-SELL: Mandate joint CF and FAV client meetings to drive referrals.

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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Houlihan Lokey Market

AI-Powered Insights

Claude

Gemini

GPT

Houlihan Lokey Investor Relations Website (Q3 2024 Earnings Report)
Official Company Website (hl.com)
Refinitiv League Tables (M&A and Restructuring Rankings)
Public statements and interviews from CEO Scott Beiser
Industry analysis reports on Investment Banking and Financial Advisory

Founded: 1972
Market Share: #1 in U.S. M&A deals under $1B
Customer Base: Mid-market corps, PE firms, creditors
Category:
Investment Banking
SIC Code: 6282 Investment Advice
NAICS Code: 523110 Finance and InsuranceT
Location: Los Angeles, CA
Zip Code: 90067
Congressional District: CA-37 LOS ANGELES
Employees: 2600

Competitors

Evercore View Analysis

Lazard View Analysis

Moelis & Company Request Analysis

PJT Partners View Analysis

Jefferies Financial Group Request Analysis

Products & Services

No products or services data available

Distribution Channels

Houlihan Lokey Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Houlihan Lokey Investor Relations Website (Q3 2024 Earnings Report)
Official Company Website (hl.com)
Refinitiv League Tables (M&A and Restructuring Rankings)
Public statements and interviews from CEO Scott Beiser
Industry analysis reports on Investment Banking and Financial Advisory

Problem

Navigating complex M&A transactions
Maximizing value in distressed situations
Obtaining credible, independent valuations

Solution

Expert-led M&A process execution
World-class restructuring advisory
Defensible fairness & solvency opinions

Key Metrics

Number of completed transactions
Total advisory fees generated
Market share rankings by deal volume

Unique

Deep specialization in niche industries
Unmatched volume of mid-market deal data
#1 global restructuring brand and legacy

Advantage

Proprietary database of private deals
Global network of senior banker relationships
Independent, conflict-free advice model

Channels

Direct outreach from senior bankers
Referrals from law firms & PE sponsors
Industry conferences and publications

Customer Segments

Middle-market public & private companies
Private equity firms and portfolio companies
Creditors, lenders, and government entities

Costs

Employee compensation and benefits (main cost)
Marketing and business development expenses
Office leases and technology infrastructure

Houlihan Lokey Product Market Fit Analysis

Updated: October 3, 2025

Houlihan Lokey provides elite, independent financial advisory to the middle market. It delivers superior outcomes in M&A, restructuring, and valuation by leveraging deep industry expertise and the world's most extensive transaction database. This firm maximizes value, mitigates risk, and ensures certainty of execution for its clients' most critical financial decisions, making it the trusted advisor when stakes are highest.

Maximizing value through expert negotiation and process management.

Mitigating risk with unparalleled restructuring and valuation expertise.

Providing certainty of execution in complex, high-stakes transactions.

Before State

Client uncertainty in complex transactions
Lack of specialized mid-market expertise
Suboptimal valuation and deal structure

After State

Clarity and confidence in strategic path
Access to world-class financial advice
Optimized transaction outcomes achieved

Negative Impacts

Value destruction during M&A or distress
Missed opportunities, poor negotiations
Regulatory and compliance risks increase

Positive Outcomes

Maximizing shareholder/stakeholder value
Successful growth via acquisition/merger
Stability achieved through restructuring

Key Metrics

Customer Retention Rates - High (significant repeat business from PE firms)

Net Promoter Score (NPS) - Not publicly available; likely strong

User Growth Rate - Measured by new client mandates, tracks M&A market

Customer Feedback/Reviews - N/A; reputation is key metric

Repeat Purchase Rates) - Over 60% of business from repeat clients

Requirements

Deep trust in the advisory relationship
Access to sensitive company information
Commitment to a structured process

Why Houlihan Lokey

Deploying industry-specific expert teams
Leveraging global network for buyers/capital
Rigorous financial analysis and modeling

Houlihan Lokey Competitive Advantage

Largest volume of mid-market deal data
Top-ranked restructuring advisory legacy
Independent, conflict-free advice model

Proof Points

Ranked #1 Global M&A Advisor (U.S. Trans.)
Ranked #1 Global Restructuring Advisor
Advised on over 1,000 transactions yearly

Houlihan Lokey Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

Houlihan Lokey Investor Relations Website (Q3 2024 Earnings Report)
Official Company Website (hl.com)
Refinitiv League Tables (M&A and Restructuring Rankings)
Public statements and interviews from CEO Scott Beiser
Industry analysis reports on Investment Banking and Financial Advisory

Strategic pillars derived from our vision-focused SWOT analysis

Unrivaled leadership in M&A/advisory.

Expand beyond core cyclical services.

Be the top destination for elite advisory talent.

Leverage data/AI for superior outcomes.

What You Do

Expert M&A, restructuring, valuation svcs

Target Market

Mid-market companies and financial sponsors

Differentiation

Unmatched middle-market deal volume
Deep industry-specific expertise

Revenue Streams

M&A transaction success fees
Advisory and retainer fees

Houlihan Lokey Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

Houlihan Lokey Investor Relations Website (Q3 2024 Earnings Report)
Official Company Website (hl.com)
Refinitiv League Tables (M&A and Restructuring Rankings)
Public statements and interviews from CEO Scott Beiser
Industry analysis reports on Investment Banking and Financial Advisory

Company Operations

Organizational Structure: Industry & product-focused group structure
Supply Chain: Human capital-based; talent acquisition
Tech Patents: Proprietary valuation models and databases
Website: https://hl.com/

Top Clients

Board Members

Houlihan Lokey Competitive Forces

Threat of New Entry

MEDIUM: Regulatory hurdles and the need for a powerful brand are high barriers, but new specialized boutiques constantly emerge.

Supplier Power

HIGH: Elite investment bankers are scarce, in high demand, and can command massive compensation packages, impacting firm profitability.

Buyer Power

MEDIUM: While clients are sophisticated, the specialized, high-stakes nature of the advice limits their ability to commoditize the service.

Threat of Substitution

LOW: For complex deals, there are few substitutes for expert human advice. AI/platforms are a long-term threat for smaller deals.

Competitive Rivalry

HIGH: Intense rivalry from elite boutiques (Evercore, Lazard) and bulge-bracket banks, leading to significant fee pressure.

Analysis of AI Strategy

Updated: October 3, 2025 • 2025-Q4 Analysis

The Houlihan Lokey AI SWOT analysis underscores a classic incumbent's dilemma: possessing a unique data advantage but lacking the native tech culture to exploit it. The firm's proprietary transaction data is a world-class asset, a potential moat in an AI-driven future. However, this potential is locked behind legacy systems and a talent gap in data science. The immediate priority must be a two-pronged attack: invest heavily in a modern data infrastructure to unify and structure its data, while simultaneously pursuing partnerships or strategic acquisitions of AI fintech firms to jumpstart capabilities. The greatest threat isn't a competitor's AI model, but internal inertia. Leadership must champion a cultural shift, transforming bankers from artisans into tech-enabled advisors who leverage AI to deliver insights at a speed and depth the competition cannot match.

Evercore Lazard Moelis & Company PJT Partners Jefferies Financial Group

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To deliver superior outcomes for clients by becoming the undisputed global leader in middle-market investment banking.

Strengths

DATA: Access to one of the world's largest proprietary M&A deal databases.
EXPERTISE: World-class bankers to train and validate AI model outputs.
CLIENT ACCESS: Established relationships to pilot and deploy AI-driven tools.
REPUTATION: Brand trust allows for client adoption of new technologies.
CAPITAL: Financial resources to invest in or acquire AI technology/talent.

Weaknesses

TALENT GAP: Shortage of in-house AI/ML engineering and data science talent.
LEGACY SYSTEMS: Fragmented and outdated systems hinder data aggregation.
CULTURE: Traditional, relationship-based culture may resist tech adoption.
DATA STRUCTURE: Proprietary data is likely unstructured and hard to use.
CHANGE MGMT: Lack of experience in deploying firm-wide tech transformations.

Opportunities

EFFICIENCY: Automate tedious tasks in valuation, DD, and market research.
INSIGHTS: Predictive analytics for target screening and distress prediction.
PERSONALIZATION: AI-driven client portals with bespoke market intelligence.
NEW PRODUCTS: Launch data-as-a-service (DaaS) products for PE/corp clients.
COMPETITIVE EDGE: Use AI to deliver faster, more accurate advice than rivals.

Threats

DISINTERMEDIATION: Fintech startups offering automated, low-cost advisory.
DATA SECURITY: Heightened risk of cyberattacks on valuable proprietary data.
MODEL BIAS: Risk of biased AI models leading to flawed financial advice.
ARMS RACE: Competitors (especially larger banks) outspending on AI R&D.
OBSOLESCENCE: Failure to adapt could make core advisory services obsolete.

Key Priorities

AUTOMATE routine financial modeling and due diligence to free up bankers.
DEVELOP predictive AI tools for M&A target identification and client risk.
INVEST in a centralized, modern data infrastructure to unify firm data.
ACQUIRE or partner with a fintech AI firm to accelerate capabilities.

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Houlihan Lokey Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

Houlihan Lokey Investor Relations Website (Q3 2024 Earnings Report)
Official Company Website (hl.com)
Refinitiv League Tables (M&A and Restructuring Rankings)
Public statements and interviews from CEO Scott Beiser
Industry analysis reports on Investment Banking and Financial Advisory

Profit: TTM Net Income: ~$240 million

Market Cap: ~$5.1 billion

Stock Performance

Annual Report: View Report

Debt: Minimal long-term debt; strong balance sheet

ROI Impact: Shareholder returns impacted by M&A cycle

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Market Leader

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Houlihan Lokey is a dominant Market Leader with a clear, achievable vision. Its Iconic Index is bolstered by strong Core Strategy and significant AI potential via its data moat. However, its growth is constrained by the cyclical nature of its core markets (reflected in SWOT and Achievability scores) and intense competition. The OKRs are strong but focus more on category shaping than fundamental disruption. The predicted multiplier reflects steady, defensible growth rather than explosive, exponential expansion.

SWOT Factors

Upside: 83.3 Risk: 80.0

OKR Impact

AI Leverage

Top 3 Strategic Levers

Monetize proprietary data via AI-driven advisory products.

Aggressively scale private capital advisory services.

Systematize cross-selling to deepen the client moat.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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