Houlihan LokeyFranklin Templeton

Houlihan Lokey vs Franklin Templeton

Houlihan Lokey and Franklin Templeton are presented to compare business models, financial performance, and market context. This page provides a neutral overview of each firm's strategy, capabilities, ...

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Banking Consolidation Europe: Might UniCredit Spark Wave?

Banking Consolidation Europe: Might UniCredit Spark Wave?

Italian banking giant UniCredit is considering the sale of its significant stake in Germany's Commerzbank, potentially to a buyer outside the European Union. This development could trigger a wave of consolidation and acquisition activity across the European banking sector, creating opportunities for strategic investors and advisory firms.

Published: September 15, 2025

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European Banking M&A

European Banking M&A

UniCredit's major stake in Commerzbank signals the start of European banking consolidation. Our experts have selected companies positioned to benefit from this wave, including potential M&A targets and the investment banks that will earn fees from these deals.

Published: July 10, 2025

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The Dealmakers: M&A Boom

The Dealmakers: M&A Boom

A carefully selected group of financial institutions driving today's surge in mergers and acquisitions. These companies are the architects behind billion-dollar deals, earning significant fees as corporate dealmaking accelerates.

Published: June 30, 2025

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Megadeal Mania

Megadeal Mania

The world of big business deals is booming, with global merger activity up 30% to $1.89 trillion. This collection features the financial powerhouses behind these massive transactions – the investment banks, advisory firms, and private equity giants that stand to profit from the deal-making surge.

Published: June 30, 2025

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Investment Analysis

Pros

  • Houlihan Lokey is a leading global investment bank with strong expertise in M&A, capital solutions, restructuring, and valuation advisory services.
  • The firm has a diversified revenue base from corporate finance, financial restructuring, and financial and valuation advisory segments.
  • Houlihan Lokey has demonstrated deal volume leadership recently across key sectors including construction, TMT, and financial services.

Considerations

  • The company operates in a cyclical industry highly dependent on M&A market activity and economic conditions.
  • Its price-to-earnings ratio near 34 indicates a relatively high valuation compared to some peers, possibly reflecting high market expectations.
  • Although global, Houlihan Lokey's geographic footprint is less extensive compared to some larger multinational investment banks, which may limit growth in certain regions.

Pros

  • Franklin Templeton is a large, diversified global asset manager with over $2 trillion in assets under management.
  • The firm’s strong acquisition strategy, including the purchase of Templeton Investments and Legg Mason, has broadened its product offerings and global reach.
  • Franklin Templeton manages a broad range of investment products including mutual funds, ETFs, fixed income, and alternatives, serving diverse client segments worldwide.

Considerations

  • Being a global asset manager, Franklin Templeton is exposed to market volatility and geopolitical risks that impact asset valuation and investor sentiment.
  • Recent portfolio activity shows significant repositioning which may indicate strategic shifts or reactions to market challenges.
  • The firm competes in a highly competitive asset management industry with pressure on fees, especially from passive investment products.

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