Why Moelis and Company

Roger Hoit

March 30, 2023

Roger Hoit

Moelis and Company is a global independent investment bank that provides strategic advice to a diverse client base, including corporations, governments, and financial sponsors. Its experienced professionals advise on critical decisions such as mergers and acquisitions, recapitalizations and restructurings, capital markets, financial institutions advisory, and private funds advisory.

Moelis and Company is a top investment bank offering clients strategic advice worldwide. Its CEO Ken Moelis is a superstar banker who values diversity and inclusivity.

Mergers & Acquisitions

A company can acquire another company outright, merge with it to create a new company, acquire some or all of its significant assets, make a tender offer for its stock, or stage a hostile takeover. Depending on the transaction, many legal and business issues must be considered.

The goal of almost all M&A transactions is corporate development, whether entering a new market, adding products or services, obtaining access to new technologies, or raising market share. It also involves increasing efficiency, reducing competition, and achieving economies of scale.

Moelis and Company offer M&A services in 21 offices across North America, Europe, Asia, the Middle East, and Australia. They provide clients with strategic advisory services on various M&A, restructuring, and capital markets transactions.

Restructuring

Restructuring is a growing trend that aims to increase a company’s overall value. Companies take a path to expand their businesses by acquiring assets, improving supply chains, and increasing their production capabilities.

Moelis and Company is an investment bank that provides financial advisory services to clients in the United States, Canada, Europe, Japan, Australia, and the Middle East. The firm focuses on mergers and acquisitions, private equity transactions, public finance, and other strategic corporate services.

MC has an impressively strong restructuring business that can help soften the impact of slowing M&A activity. The business can also create new long-term client relationships, which is good for shareholders.

The downside of this business line is that it takes time to complete, and therefore, cash flows can be sluggish, although management runs the business conservatively, so this shouldn’t be an issue. The best part is that the business carries no debt, which allows it to take advantage of opportunities without fear of running out of cash.

Capital Markets

Moelis & Company provides strategic financial advisory services to various clients, including corporations, governments, and financial sponsors. The firm offers comprehensive, integrated, innovative financial solutions across all major industry sectors in mergers and acquisitions, restructuring, and recapitalizations.

Since its founding in 2007, Moelis & Company has advised on over a trillion dollars in transactions and maintains 15 offices worldwide. Its team of professionals provides clients with specialized advice on their most critical decisions and helps them achieve their business goals.

Despite the current economic and monetary challenges, Moelis has generated strong investment banking performance in recent quarters. Its EPS surpassed the Zacks Consensus Estimate in two of the four quarters.

However, a slowing M&A market may impact Moelis’s earnings. Additionally, higher rates and geopolitical tensions could also have an impact on its revenues. A negative impact on the Company’s performance is expected to be its rising expenses, driven by its consistent hiring and investing in franchises.

Private Equity

Moelis and Company provide strategic and financial advisory services to various corporations, governments, and sponsors. The firm serves clients with the help of professional advisory teams based in the Americas, Europe, Asia, and Australia.

The Company’s investment banking activities include M&A and strategic advisory, capital structure advisory, capital markets, financial institutions advisory, and private funds advisory. The Company also offers a range of other corporate finance-related services.

The firm’s private fund advisory business was established in June 2014. It provides capital raising and secondary and independent advisory services to private fund sponsors. It has recently completed the final closing of Valor Equity Partners III, a $490 million flexible growth equity fund.