Houlihan Lokey Expands Its European Business Through Two Deals

By Zacks Equity Research | January 21, 2026, 11:45 AM
Houlihan Lokey, Inc. (HLI), a leading global investment bank, has recently announced two acquisitions to strengthen its European business and support long-term global growth. These moves focus on expanding advisory capabilities and sector expertise.
Houlihan Lokey will acquire a controlling stake in Audere Partners, a French advisory firm. The transaction is expected to be closed in the first quarter of 2026. Upon completion, Audere Partners will operate under the Houlihan Lokey brand. This acquisition will strengthen Houlihan Lokey’s position as one of the leading mid-sized deal advisers in France and expand its French team to approximately 80 professionals.
Houlihan Lokey has also acquired Mellum Capital’s real estate capital advisory business, expanding its infrastructure and real estate advisory presence in Munich and London.
These acquisitions bring in skilled teams, established local client relationships, and new expertise, and build on the momentum in its EMEA business, which now boasts around 550 financial professionals. The moves are expected to enable the firm secure more assignments in Europe and increase advisory fees as deal activity picks up. Since advisory businesses benefit from scale, higher revenues are likely to lead to better long-term margins once the new teams are fully integrated.
Houlihan Lokey’s return on invested capital of 13.1% is well above the industry average of 5.6%, indicating efficient capital usage. The balance sheet is solid, with a current ratio of 1.3 and zero debt. The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 16.5%. It maintains a healthy pre-tax margin of 21.6%, as seen in the last reported quarter.
Houlihan Lokey appears to be a financially sound company with superior profitability, low risk, and a track record of operational outperformance, associated with stable earnings, investor confidence and worth for long-term value creation.
HLI’s Price Performance
Houlihan Lokey’s shares have risen about 1.8% over the past year, outperforming the industry’s decline of roughly 15%.

 
HLI’s Valuation
HLI trades at a price-to-earnings ratio of 24.4, above the industry average of 23.2, implying the stock currently has less room for growth. It carries a Value Score of D.
Zacks Rank & Key Picks 
HLI stock currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Finance space are Futu Holdings Limited (FUTU), sporting a Zacks Rank #1 (Strong Buy) at present, Axos Financial, Inc. (AX) and Acadian Asset Management Inc. (AAMI), both carrying a Zacks Rank #2 (Buy). You can see???the complete list of today’s Zacks #1 Rank  stocks here.
The Zacks Consensus Estimate for FUTU’s full-year 2025 earnings is pegged at $9.53 per share, implying a 90.2% jump from the year-ago reported figure. The consensus mark for revenues is pegged at $2.8 billion, indicating 60.2% year-over-year growth. 
The Zacks Consensus Estimate for Axos’ fiscal 2026 earnings is pegged at $8.23 per share, implying a 90.7% jump from the year-ago reported figure. The consensus mark for revenues is pegged at $1.4 billion, indicating 9.1% year-over-year growth. 
The consensus estimate for Acadian Asset’s full-year 2025 earnings is pegged at $3.23 per share, implying a 17% jump from the year-ago reported figure. The consensus mark for revenues is pegged at $577.9 million, indicating 14.3% year-over-year growth. 
Houlihan Lokey, Inc. (HLI), a leading global investment bank, has recently announced two acquisitions to strengthen its European business and support long-term global growth. These moves focus on expanding advisory capabilities and sector expertise.
Houlihan Lokey will acquire a controlling stake in Audere Partners, a French advisory firm. The transaction is expected to be closed in the first quarter of 2026. Upon completion, Audere Partners will operate under the Houlihan Lokey brand. This acquisition will strengthen Houlihan Lokey’s position as one of the leading mid-sized deal advisers in France and expand its French team to approximately 80 professionals.
Houlihan Lokey has also acquired Mellum Capital’s real estate capital advisory business, expanding its infrastructure and real estate advisory presence in Munich and London.
These acquisitions bring in skilled teams, established local client relationships, and new expertise, and build on the momentum in its EMEA business, which now boasts around 550 financial professionals. The moves are expected to enable the firm secure more assignments in Europe and increase advisory fees as deal activity picks up. Since advisory businesses benefit from scale, higher revenues are likely to lead to better long-term margins once the new teams are fully integrated.
Houlihan Lokey’s return on invested capital of 13.1% is well above the industry average of 5.6%, indicating efficient capital usage. The balance sheet is solid, with a current ratio of 1.3 and zero debt. The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 16.5%. It maintains a healthy pre-tax margin of 21.6%, as seen in the last reported quarter.
Houlihan Lokey appears to be a financially sound company with superior profitability, low risk, and a track record of operational outperformance, associated with stable earnings, investor confidence and worth for long-term value creation.
HLI’s Price Performance
Houlihan Lokey’s shares have risen about 1.8% over the past year, outperforming the industry’s decline of roughly 15%.

 
HLI trades at a price-to-earnings ratio of 24.4, above the industry average of 23.2, implying the stock currently has less room for growth. It carries a Value Score of D.
Zacks Rank & Key Picks 
HLI stock currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Finance space are Futu Holdings Limited (FUTU), sporting a Zacks Rank #1 (Strong Buy) at present, Axos Financial, Inc. (AX) and Acadian Asset Management Inc. (AAMI), both carrying a Zacks Rank #2 (Buy). You can see???the complete list of today’s Zacks #1 Rank  stocks here.
The Zacks Consensus Estimate for FUTU’s full-year 2025 earnings is pegged at $9.53 per share, implying a 90.2% jump from the year-ago reported figure. The consensus mark for revenues is pegged at $2.8 billion, indicating 60.2% year-over-year growth. 
The Zacks Consensus Estimate for Axos’ fiscal 2026 earnings is pegged at $8.23 per share, implying a 90.7% jump from the year-ago reported figure. The consensus mark for revenues is pegged at $1.4 billion, indicating 9.1% year-over-year growth. 
The consensus estimate for Acadian Asset’s full-year 2025 earnings is pegged at $3.23 per share, implying a 17% jump from the year-ago reported figure. The consensus mark for revenues is pegged at $577.9 million, indicating 14.3% year-over-year growth. Houlihan Lokey, Inc. HLI, a leading global investment bank, has recently announced two acquisitions to strengthen its European business and support long-term global growth. These moves focus on expanding advisory capabilities and sector expertise.
Houlihan Lokey will acquire a controlling stake in Audere Partners, a French advisory firm. The transaction is expected to be closed in the first quarter of 2026. Upon completion, Audere Partners will operate under the Houlihan Lokey brand. This acquisition will strengthen Houlihan Lokey’s position as one of the leading mid-sized deal advisers in France and expand its French team to approximately 80 professionals.Houlihan Lokey has also acquired Mellum Capital’s real estate capital advisory business, expanding its infrastructure and real estate advisory presence in Munich and London.
 
Houlihan Lokey, Inc. HLI, a leading global investment bank, has recently announced two acquisitions to strengthen its European business and support long-term global growth. These moves focus on expanding advisory capabilities and sector expertise.

Houlihan Lokey will acquire a controlling stake in Audere Partners, a French advisory firm. The transaction is expected to be closed in the first quarter of 2026. Upon completion, Audere Partners will operate under the Houlihan Lokey brand. This acquisition will strengthen Houlihan Lokey’s position as one of the leading mid-sized deal advisers in France and expand its French team to approximately 80 professionals.

Houlihan Lokey has also acquired Mellum Capital’s real estate capital advisory business, expanding its infrastructure and real estate advisory presence in Munich and London.

These acquisitions bring in skilled teams, established local client relationships, and new expertise, and build on the momentum in its EMEA business, which now boasts around 550 financial professionals. The moves are expected to enable the firm secure more assignments in Europe and increase advisory fees as deal activity picks up. Since advisory businesses benefit from scale, higher revenues are likely to lead to better long-term margins once the new teams are fully integrated.

Houlihan Lokey’s return on invested capital of 13.1% is well above the industry average of 5.6%, indicating efficient capital usage. The balance sheet is solid, with a current ratio of 1.3 and zero debt. The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 16.5%. It maintains a healthy pre-tax margin of 21.6%, as seen in the last reported quarter.

Houlihan Lokey appears to be a financially sound company with superior profitability, low risk, and a track record of operational outperformance, associated with stable earnings, investor confidence and worth for long-term value creation.

HLI’s Price Performance

Houlihan Lokey’s shares have risen about 1.8% over the past year, outperforming the industry’s decline of roughly 15%.

HLI’s Valuation

HLI trades at a price-to-earnings ratio of 24.4, above the industry average of 23.2, implying the stock currently has less room for growth. It carries a Value Score of D.

Zacks Rank & Key Picks

HLI stock currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Finance space are Futu Holdings Limited FUTU, sporting a Zacks Rank #1 (Strong Buy) at present, Axos Financial, Inc. AX and Acadian Asset Management Inc. AAMI, both carrying a Zacks Rank #2 (Buy). You can see???the complete list of today’s Zacks #1 Rank  stocks here.

The Zacks Consensus Estimate for FUTU’s full-year 2025 earnings is pegged at $9.53 per share, implying a 90.2% jump from the year-ago reported figure. The consensus mark for revenues is pegged at $2.8 billion, indicating 60.2% year-over-year growth. 

The Zacks Consensus Estimate for Axos’ fiscal 2026 earnings is pegged at $8.23 per share, implying a 90.7% jump from the year-ago reported figure. The consensus mark for revenues is pegged at $1.4 billion, indicating 9.1% year-over-year growth. 

The consensus estimate for Acadian Asset’s full-year 2025 earnings is pegged at $3.23 per share, implying a 17% jump from the year-ago reported figure. The consensus mark for revenues is pegged at $577.9 million, indicating 14.3% year-over-year growth. 

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Houlihan Lokey, Inc. (HLI): Free Stock Analysis Report
 
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This article originally published on Zacks Investment Research (zacks.com).

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