Houlihan Lokey: The Middle-Market Powerhouse and Restructuring Leader

For 23 consecutive years, Houlihan Lokey has been named the #1 restructuring advisor globally. Not top-three. Not "among the leaders." Number one—every single year.

That's the restructuring franchise. But Houlihan Lokey has also become the most active M&A advisor by deal count in the middle market, completing more transactions than any competitor. The firm closes deals. Hundreds of them annually.

This combination—dominance in restructuring plus volume leadership in M&A—creates a distinctive platform. The firm isn't trying to be Goldman Sachs. It's built a different model, and that model works.

Here's what you need to know about Houlihan Lokey—the culture, the work, the exits, and whether it's right for you.

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The Firm's Identity

Three Business Lines

Houlihan Lokey operates three distinct but interconnected businesses:

Corporate Finance: M&A advisory focused on middle-market transactions. This is the largest revenue contributor. The firm consistently ranks #1 by number of transactions globally under $1 billion.

Financial Restructuring: The crown jewel. Advises companies, creditors, and other stakeholders in distressed situations. The only restructuring practice that rivals this is Lazard's.

Financial and Valuation Advisory: Portfolio valuations, fairness opinions, and transaction opinions. Less glamorous but highly profitable. Creates relationships that feed M&A and restructuring.

Each business has its own culture and work style. The combination creates stability—when M&A slows, restructuring accelerates; when both slow, valuation advisory provides steady revenue.

The Middle-Market Focus

Houlihan Lokey doesn't chase mega-deals. The sweet spot is transactions valued between $100 million and $1 billion.

Why this matters:

• Volume: More transactions means more reps for juniors
• Client access: Smaller deals mean closer client relationships
• Speed: Middle-market deals close faster than mega-transactions
• Breadth: Exposure to many industries and situations

The firm has built an unmatched database of transaction data through decades of deal flow. This proprietary information becomes a competitive advantage in pricing and negotiations.

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Culture and Work Environment

The Deal Machine

Houlihan Lokey is known for volume. Analysts and associates often work on multiple live deals simultaneously.

What this means:

• Fast learning curve—you'll see many deal structures quickly
• Less depth per deal than working on one mega-merger for six months
• Strong technical foundation from repetition
• Efficient processes and standardized approaches

Some people thrive in this environment. Others prefer working on a single transformational deal for extended periods. Know which you are.

Collaborative and Less Hierarchical

The firm has a reputation for being collegial. Senior bankers are generally accessible. The culture is less "eat what you kill" than some competitors.

Team structure:

• Analysts work across deal teams rather than being siloed
• Associates have meaningful client interaction
• MDs value input from juniors on deal strategy
• Cross-staffing between M&A and restructuring happens

The restructuring group, in particular, is known for tight-knit teams. Restructuring deals require around-the-clock collaboration. That builds relationships.

Hours and Lifestyle

Houlihan Lokey works hard, but the lifestyle is somewhat better than elite boutiques focused on mega-deals.

Typical expectations:

• Average week: 65-80 hours
• Busy periods: 80-90 hours during deal closings or restructuring emergencies
• Weekend work: Expect it, but not every weekend
• Travel: Moderate—varies by group and deal

The middle-market focus means deals move faster. You're less likely to spend months on a single transaction that drags. But volume means there's always another deal.

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Restructuring: The Franchise

Why Houlihan Lokey Dominates

Several factors explain the restructuring dominance:

Depth of talent: The firm has invested in restructuring talent for decades. The bench of experienced restructuring bankers is unmatched.

Full-service capability: Advises companies, secured lenders, bondholders, creditors' committees—anyone in the capital structure.

Cross-border expertise: Handles international restructurings with local market knowledge.

Valuation capabilities: The valuation practice supports restructuring with independent analysis.

Track record: Success breeds success. Boards and creditors hire the firm because it has handled situations like theirs before.

What Restructuring Work Looks Like

Restructuring at Houlihan Lokey differs from M&A:

The process:

• Engage during financial distress
• Analyze the capital structure and viable restructuring options
• Negotiate with creditors on behalf of the company (or vice versa)
• Execute transactions (refinancing, exchange offers, Chapter 11)
• Support the company through emergence

The intensity: Restructuring is unpredictable. A company's liquidity crisis doesn't wait for weekends. You may need to work around the clock when situations are acute.

The intellectual challenge: Restructuring combines finance, law, negotiation, and game theory. Understanding creditor motivations, legal rights, and strategic options requires multidisciplinary thinking.

Restructuring vs. M&A at HL

Factor	Restructuring	Corporate Finance (M&A)
Deal duration	Variable—weeks to years	Typically 4-8 months
Hours consistency	More variable	More predictable
Client type	Distressed companies, creditors	Healthy companies, sponsors
Travel	Less frequent	More frequent
Technical focus	Credit, legal, capital structure	Valuation, synergies, process
Exit opportunities	Distressed HFs, special situations PE	Broader—PE, HF, corp dev

Many people choose Houlihan Lokey specifically for restructuring. If that's your interest, this is arguably the best training ground in the industry.

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Compensation and Progression

Analyst Compensation (2024)

Component	Amount
Base salary	$100,000-$110,000
Signing bonus	$15,000
Year-end bonus	$70,000-$100,000
Total first year	$185,000-$225,000

Compensation is competitive with other middle-market banks and slightly below top elite boutiques. The gap has narrowed in recent years as the firm has raised pay to remain competitive.

Associate Compensation

Level	Base	Bonus Range
Associate 1	$175,000	$80,000-$125,000
Associate 2	$200,000	$100,000-$150,000
Associate 3	$225,000	$125,000-$175,000

Progression through associate levels typically takes 3 years total before VP promotion consideration.

Career Path

Typical progression:

• Analyst: 2-3 years
• Associate: 3 years
• VP: 3-4 years
• Senior VP: 2-3 years
• Managing Director: Based on client development

The firm promotes from within and has developed many senior bankers through the ranks. The middle-market focus creates more MD slots than firms chasing only mega-deals.

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Recruiting Process

Target Schools

Houlihan Lokey recruits broadly, including schools not typically targeted by elite boutiques:

Core undergraduate targets:

• USC (Los Angeles headquarters proximity)
• UCLA
• UC Berkeley
• University of Michigan
• Indiana (Kelley)
• Texas (McCombs)
• NYU
• Georgetown
• University of Virginia
• Notre Dame

MBA targets:

• Chicago Booth
• UCLA Anderson
• USC Marshall
• Columbia
• Michigan Ross
• Duke Fuqua

The firm values demonstrated interest and preparation over pure pedigree. Non-target candidates with strong networking and technical skills can break in.

What Houlihan Lokey Looks For

Technical competence: Solid understanding of accounting, valuation, and financial modeling. The volume model requires analysts who can execute immediately.

Work ethic: Can you handle the volume? They want evidence of sustained effort.

Teamwork: The collaborative culture means they screen for people who work well with others.

Interest in middle market or restructuring: Generic "I want to do banking" is less compelling than specific interest in what makes HL different.

Cultural fit: Less flashy than elite boutiques. Substance over style.

Interview Process

First round: 30-45 minutes, typically behavioral plus basic technicals. Cover your story, why banking, why HL specifically.

Superday: 4-6 interviews with bankers at various levels. Mix of technical depth and fit assessment. Restructuring candidates may get more restructuring-specific questions.

Technical topics:

• Accounting fundamentals (three-statement linkages)
• Valuation methods (DCF, comps, precedents)
• M&A mechanics (accretion/dilution, merger model)
• LBO basics
• Restructuring concepts (if interviewing for RX)

Common behavioral questions:

• Why investment banking?
• Why Houlihan Lokey over bulge brackets?
• Tell me about a time you managed multiple priorities
• What draws you to middle-market transactions (or restructuring)?

Breaking In From Non-Targets

Houlihan Lokey is more accessible than some competitors for non-target candidates. The approach:

1. Network aggressively: Reach out to alumni and current employees
2. Demonstrate specific interest: Know why HL's model appeals to you
3. Technical preparation: Be sharp on fundamentals—they'll test you
4. Persistence: Apply through multiple channels (online, networking, referrals)
5. Consider LA: The headquarters in Los Angeles is less competitive than NYC for entry

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Exit Opportunities

Where Analysts Go

Houlihan Lokey places well into buy-side roles, with some differences by group:

Corporate Finance (M&A) analysts:

• Middle-market private equity
• Growth equity
• Some larger PE firms
• Corporate development
• MBA programs

Restructuring analysts:

• Distressed debt funds
• Special situations PE
• Credit-focused hedge funds
• Distressed advisory at other banks
• MBA programs

The restructuring exit path is more specialized. Analysts often stay in distressed investing or advisory. The M&A path is broader.

Private Equity Placement

The middle-market focus translates directly to middle-market PE. Firms recruiting from HL:

• Upper middle-market sponsors ($500M-$2B deals)
• Sector-focused funds
• Growth equity
• Operationally-oriented PE

Mega-fund PE placement is possible but less common than from elite boutiques or bulge brackets. The deal size experience matters.

Restructuring-Specific Exits

Restructuring analysts have access to a specialized buy-side:

Distressed debt funds: Oaktree, Apollo credit strategies, Centerbridge, Silver Point

Special situations PE: Cerberus, Avenue Capital, Anchorage

Hedge funds: Elliott, Canyon Partners, distressed strategies at multi-managers

This path is narrower but deep. Top restructuring talent from HL is highly sought after.

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Who Thrives at Houlihan Lokey

Good Fit

The deal-volume seeker: You want to see many transactions, not work on one mega-deal for a year.

The restructuring specialist: You're specifically interested in distressed situations and turnarounds.

The middle-market enthusiast: You value client access and seeing deals through.

The collaborative worker: You prefer team environments over lone-wolf competition.

The practical learner: You learn by doing. More deals means more learning.

Less Ideal Fit

The mega-deal seeker: You want to work on headline-grabbing $50B mergers.

The prestige maximizer: Brand recognition matters most to you.

The generalist keeping options open: You want the broadest possible exit options.

The coast-averse: The LA headquarters doesn't appeal—though NYC and other offices exist.

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Comparison to Peers

vs. Elite Boutiques (Evercore, Lazard, Centerview)

Factor	Houlihan Lokey	Elite Boutiques
Deal size	Middle-market focused	Large-cap focused
Deal volume	Higher	Lower
Restructuring	#1 globally	Lazard comparable; others less
Prestige/brand	Strong but different	Stronger for generalist banking
Comp	Slightly lower	Higher
Exit breadth	Narrower (MM PE, distressed)	Broader

vs. Bulge Brackets

HL advantages:

• More deal reps and client exposure
• Best-in-class restructuring
• Less bureaucracy
• Faster advancement

Bulge bracket advantages:

• Bigger brands
• Larger deals
• More diverse platform (S&T, research)
• International mobility

vs. Other Middle-Market Banks (William Blair, Harris Williams, Baird)

Houlihan Lokey is the most established and largest of the true middle-market banks. The restructuring franchise differentiates it further. Compensation and exit opportunities are generally comparable across this peer set.

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The Los Angeles Factor

Houlihan Lokey is headquartered in Los Angeles. This matters:

Advantages:

• Less competitive recruiting than NYC
• Lower cost of living (relatively)
• Different lifestyle than Manhattan banking
• Strong tech/media deal flow (entertainment industry)

Considerations:

• Farther from NYC-centric buy-side recruiting
• May need to relocate for certain exits
• NYC office exists but smaller
• West Coast culture differs from East Coast banking

If LA appeals to you, HL is one of the best banking opportunities on the West Coast. If you're committed to NYC, the New York office is an option, but the firm's center of gravity is California.

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Key Takeaways

Houlihan Lokey has built something distinctive: the #1 restructuring practice combined with the most active middle-market M&A platform.

What makes HL different:

• Unmatched restructuring expertise
• Volume-driven M&A practice
• Middle-market focus with proprietary deal data
• Collaborative, substance-over-style culture

The trade-offs:

• Less brand prestige than elite boutiques
• Smaller deal sizes limit some exit paths
• LA headquarters isn't for everyone
• Volume means less depth per transaction

The bottom line:

Houlihan Lokey is the right choice for candidates who want either (a) the best restructuring training in the industry, or (b) high-volume middle-market M&A experience with meaningful client exposure.

If you're chasing mega-deals or pure brand prestige, look elsewhere. If you want to become a restructuring expert or learn M&A through repetition and client access, Houlihan Lokey is hard to beat.

The firm knows what it is. That clarity of identity—and the 23-year restructuring streak—speaks for itself.