Mission Statement, Vision, & Core Values (2024) of Houlihan Lokey, Inc. (HLI)

An Overview of Houlihan Lokey, Inc. (HLI)

General Summary of the Company

Houlihan Lokey, Inc. (HLI) is a global investment bank with a strong focus on mergers and acquisitions, financial restructuring, and financial advisory services. Founded in 1972, the firm has grown significantly and now operates in more than 25 offices across North America, Europe, and Asia. The company specializes in providing advisory services to clients in various sectors, including technology, healthcare, and consumer products.

As of 2024, Houlihan Lokey offers a range of services including:

• Corporate Finance
• Financial Restructuring
• Financial and Valuation Advisory

In 2024, Houlihan Lokey reported total revenues of approximately $1.09 billion, marking a substantial increase from previous years. The firm has continued to expand its market presence, particularly in the corporate finance sector, which has been a major driver of its revenue growth.

Company's Financial Performance in the Latest Financial Reports

For the three months ended September 30, 2024, Houlihan Lokey reported revenues of $575 million, compared to $467 million for the same period in 2023, reflecting a 23% increase. The financial performance breakdown by segment is as follows:

For the six months ended September 30, 2024, total revenues reached $1.09 billion, an increase of 23% compared to $883 million for the same period in 2023. The net income attributable to Houlihan Lokey for this period was $182 million, up from $128 million in the previous year, representing a 42% increase.

Key financial metrics for the six months ended September 30, 2024 include:

• Operating income: $226 million
• Net income: $182 million
• Earnings per share (diluted): $2.67

Introduction to Company as One of the Leaders in the Industry

Houlihan Lokey stands out as a leading investment bank known for its robust advisory services and a strong track record in financial restructuring and corporate finance. The firm's reputation in the investment banking industry is bolstered by its consistent financial performance and strategic growth initiatives. The company has been recognized for its expertise in handling complex transactions and providing insightful financial guidance to clients.

As of 2024, Houlihan Lokey continues to demonstrate its leadership through:

• Record-breaking revenue growth across all business segments
• Strategic expansions into new markets
• A commitment to maintaining high standards of client service and advisory excellence

Investors and industry professionals looking to understand the factors behind Houlihan Lokey's success are encouraged to explore the company's strategic initiatives and market positioning further.

Mission Statement of Houlihan Lokey, Inc. (HLI)

Mission Statement Overview

The mission statement of Houlihan Lokey, Inc. (HLI) serves as a fundamental guide for the company's strategic direction and operational execution. It emphasizes the commitment to deliver high-quality financial services and advice across its diverse business segments, fostering client trust and long-term relationships.

Core Component 1: Client Commitment

At the core of Houlihan Lokey's mission is a strong commitment to its clients. The company prioritizes understanding client needs, which is reflected in its tailored financial solutions. For instance, in the first half of fiscal 2024, Houlihan Lokey generated revenues of $574.9 million, marking a 23% increase from $467.0 million in the same period of the previous year. This growth can be attributed to the increased demand for advisory services, particularly in mergers and acquisitions (M&A) and financial restructuring.

Core Component 2: Integrity and Transparency

Integrity and transparency are vital components of Houlihan Lokey's mission. The company ensures that all client interactions are characterized by honesty and clarity. This approach not only builds trust but also enhances the company's reputation in the financial advisory industry. In the most recent financial disclosures, the effective tax rate for the company was 31.3% for Q2 2024, reflecting its commitment to ethical financial practices.

Core Component 3: Innovation in Financial Services

Innovation is a crucial aspect of Houlihan Lokey's mission, as it continuously seeks to enhance its service offerings through technological advancements and strategic insights. For example, in the financial restructuring segment, revenues increased by 12% to $79.4 million in Q2 2024 from $70.6 million in Q2 2023. This growth reflects the company's ability to adapt to changing market conditions and client needs.

Overall, Houlihan Lokey's mission statement encapsulates its dedication to client service, integrity, and innovation, positioning the firm as a leading financial advisory provider. The emphasis on these core components ensures that the company remains focused on delivering exceptional value to its clients while navigating the complexities of the financial landscape.

Vision Statement of Houlihan Lokey, Inc. (HLI)

Vision Statement Overview

The vision statement of Houlihan Lokey, Inc. (HLI) aims to position the firm as a leader in providing innovative financial solutions and advisory services globally. The company's focus is on delivering exceptional value to clients through a commitment to excellence, integrity, and teamwork.

Commitment to Client Success

Houlihan Lokey emphasizes a strong commitment to client success as a core component of its vision. The firm aims to establish long-term partnerships with clients by understanding their unique needs and delivering tailored solutions. For the six months ended September 30, 2024, Houlihan Lokey reported revenues of $1,088.6 million, reflecting a 23% increase from $882.8 million in the same period the previous year, demonstrating the effectiveness of its client-centric approach.

Global Reach and Expertise

As part of its vision, Houlihan Lokey seeks to leverage its global reach and expertise across diverse markets. The company operates more than thirty offices worldwide, providing services in corporate finance, financial restructuring, and financial and valuation advisory. For the three months ended September 30, 2024, the Corporate Finance segment alone generated revenues of $364.0 million, an increase of 29% year-over-year. This growth underscores the firm's ability to capitalize on global market opportunities.

Innovative Financial Solutions

Innovation is at the heart of Houlihan Lokey's vision. The firm is dedicated to developing cutting-edge financial solutions that address complex challenges faced by clients. In the Financial Restructuring segment, revenues were $131.6 million for the three months ended September 30, 2024, marking a 15% increase from the previous year. This growth illustrates the firm's commitment to providing innovative strategies in a dynamic market environment.

Integrity and Professionalism

Integrity and professionalism are foundational elements of Houlihan Lokey's vision. The firm strives to uphold the highest ethical standards in all its dealings. This commitment is reflected in the company's effective tax rate of 22.7% for the six months ended September 30, 2024, down from 24.4% in the previous year, highlighting a focus on compliance and responsible financial management.

Teamwork and Collaboration

Teamwork and collaboration are essential to achieving Houlihan Lokey's vision. The firm fosters a culture of collaboration among its professionals to deliver comprehensive solutions to clients. The average number of managing directors in the Corporate Finance segment increased to 224 as of September 30, 2024, up from 211 the previous year. This increase reflects the firm’s investment in talent and collaborative efforts to enhance service delivery.

Conclusion of Vision Statement Analysis

The vision of Houlihan Lokey, Inc. is built on the pillars of client success, global expertise, innovation, integrity, and teamwork. The company's robust financial performance, as evidenced by significant revenue increases across its business segments, underscores its successful execution of this vision.

Core Values of Houlihan Lokey, Inc. (HLI)

Integrity

Integrity is a foundational core value at Houlihan Lokey, Inc. (HLI), emphasizing honesty, accountability, and transparency in all interactions.

In 2024, HLI demonstrated its commitment to integrity through various initiatives, including compliance training for employees, ensuring adherence to ethical standards. The company reported a net income of $93.5 million for the three months ended September 30, 2024, a 40% increase from the previous year, reflecting the trust clients place in HLI's integrity.

Excellence

Excellence drives Houlihan Lokey to deliver high-quality services and exceptional results for clients. The company continually invests in talent and resources to maintain its competitive edge.

In the first half of fiscal 2024, revenues reached $1.09 billion, marking a 23% increase year-over-year. This growth is attributed to excellence in financial advisory services, as evidenced by a notable increase in closed transactions, particularly in the Corporate Finance segment, which saw revenues of $364 million for the three months ended September 30, 2024.

Collaboration

Collaboration fosters teamwork and innovation at HLI. The company encourages cross-functional collaboration to enhance problem-solving and deliver comprehensive solutions to clients.

For the three months ended September 30, 2024, HLI reported 131 closed transactions in Corporate Finance, a 12% increase from the same period in 2023. This achievement underscores the effectiveness of collaborative efforts among various teams within the company.

Respect

Respect is integral to HLI's culture, promoting inclusivity and valuing diverse perspectives. The company believes that fostering a respectful environment enhances employee engagement and client relationships.

In 2024, HLI continued to prioritize respect through employee engagement initiatives, resulting in a 22% increase in employee compensation and benefits expenses, reflecting the company's commitment to valuing its workforce.

Innovation

Innovation at Houlihan Lokey drives the exploration of new ideas and solutions to meet evolving client needs. The company embraces technology and creative approaches to enhance its service offerings.

As of September 30, 2024, HLI's investment in technology resulted in improved operational efficiency, contributing to a 38% increase in operating income to $226 million for the first half of the fiscal year.

Updated on 16 Nov 2024

Resources:

1. Houlihan Lokey, Inc. (HLI) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Houlihan Lokey, Inc. (HLI)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Houlihan Lokey, Inc. (HLI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.