Equity in a law firm discussion

1. Equity
Discussion
in
a
Law
Firm
March
2015

2. Equity
Discussion
in
a
Law
Firm
• This
paper
is
presented
to
s8mulate
thinking
about
alterna8ve
capital
structures
for
a
law
firm
in
the
world
we
now
live
• The
points
raised
are
what
has
been
described
to
me
as
ideas
worth
thinking
about.
These
ideas
come
from:
• Academics
• Chairmen
of
law
firms
• External
board
members
of
law
firms
• CEO’s
of
law
firms
• Partners
in
law
firms
• Many
firms
have,
are
or
planning
to
go
down
varia8ons
of
the
paths
described
below
• Some
of
the
ideas
presented
are
revolu8onary
–
which
given
the
state
of
the
market
are
worthy
of
debate
12/14/15
2

3. Equity
Discussion
in
a
Law
Firm
• What’s
wrong
with
law
firms
today?
• Lawyers
complain
of
being
treated
like
“leverage
tools”
and
given
inadequate
opportuni8es
for
mentoring,
training,
client
contact,
and
career
advancement
• Clients
feel
overcharged
and
underserved,
and
are
constantly
searching
for
a
beUer
deal
from
a
different
firm
• Partners
have
grown
8red
of
a
“what-­‐have-­‐you-­‐done-­‐for-­‐me-­‐lately”
culture
in
which
they
have
to
bill
and
earn
as
much
as
possible
during
their
produc8ve
working
years
and
who,
like
clients,
are
all
too
willing
to
chase
a
beUer
deal
at
another
firm
• What
is
to
blame
for
this
discontent?
• Many
academics
and
other
observers
of
the
legal
industry
and
profession
suggest
that
the
cause
of
these
issues
is
law
firm
short-­‐termism:
• Law
firms
place
too
much
emphasis
on
current
revenue
genera8on—the
annual
“profits-­‐
per-­‐partner”
numbers—
and
not
enough
emphasis
on
building
long-­‐term
value
• At
core,
it
is
this
short-­‐term
outlook
that
leads
law
firms
to
squander
valuable
opportuni8es
to
build
long-­‐term
loyalty
among
their
clients
and
lawyers
• There
is
an
argument
that
the
most
promising
solu8on
to
law
firm
short-­‐termism
is
a
simple
one:
change
the
law
firm’s
capital
structure
12/14/15
3

4. Equity
Discussion
in
a
Law
Firm
• In
the
space
of
20
years,
we
have
seen
drama8c
change
in
the
legal
profession:
• Lawyers
no
longer
spend
their
en8re
careers
at
the
one
law
firm.
Just
recently
a
senior
partner
changed
firms
for
the
8th
8me
• There
is
unprecedented
vola8lity
in
retaining
talent
in
major
law
firms
all
over
the
world
• Lock-­‐step
compensa8on
systems
have
gradually
been
replaced
by
systems
that
reward
the
best
performers
in
response
to
this
vola8lity
–
this
has
changed
the
culture
in
many
firms
–
and
not
for
the
beUer
many
people
argue
• Over
the
same
8me
period,
clients
have
shi_ed
from
relying
on
a
single
law
firm
as
their
long-­‐term
trusted
advisor
to
instead
relying
on
in-­‐house
legal
departments
and
shopping
their
outside
work
among
a
number
of
different
law
firms
• Lawyers
and
clients
alike
increasingly
view
the
law
firm
as
a
loose
associa8on
of
economically
mo8vated
free
agents
who
happen
to
prac8ce
law
under
the
same
roof
12/14/15
4

5. Equity
Discussion
in
a
Law
Firm
• Law
firms
focus
exclusively
on
the
short
term
because
the
people
in
charge
of
law
firms
are
compensated
based
solely
on
short-­‐term
performance
• These
people
do
not
hold
permanent
equity
interests
that
would
compensate
them
for
crea8ng
long-­‐term
value
• Law
firm
partners
share
in
a
firm’s
profits
only
for
so
long
as
they
are
employed
and
generate
revenues
• Upon
re8rement,
a
small
number
of
partners
may
receive
a
declining
draw
that
resembles
an
employee
pension,
but
their
equity
interest
vanishes
• Law
firms
are
structured
to
be
nothing
more
than
transitory
associa8ons
of
individuals
who
happen
to
prac8ce
law
under
the
same
roof
for
a
par8cular
period
of
8me
• This
paper
explores
how
an
alterna8ve
capital
structure—one
with
conven8onal
permanent
equity—would
change
lawyer
incen8ves
and
improve
both
the
economics
of
law
prac8ce
and
the
cultural
experience
of
all
of
a
law
firm’s
cons8tuencies
• The
proposed
thoughts
offer
the
promise
of
marked
improvements
for
law
firm
partners,
lawyers,
and
clients
12/14/15
5

6. Equity
Discussion
in
a
Law
Firm
• In
a
permanent
equity
model:
• Partners
would
be
rewarded
for
building
las8ng
businesses,
not
just
for
current
billings,
and
their
equity
interests
could
grow
to
be
worth
many
8mes
their
annual
compensa8on,
thus
providing
a
significant
nest
egg
for
re8rement
• Junior
lawyers
would
no
longer
be
merely
a
source
of
leverage
in
a
harsh,
up-­‐or-­‐out
culture,
but
rather
would
be
embraced
as
the
future
of
the
firm
and
the
key
to
its
equity
value
• Finally,
clients
would
benefit
because
the
value
of
the
firm
would
depend
more
on
the
sustainability
of
future
earnings
then
on
billings
in
any
single
period,
and
law
firms
would
have
every
incen8ve
to
win
and
retain
their
clients’
con8nuing
loyalty,
even
if
that
means
accep8ng
alterna8ve
billing
arrangements
and
lower
current
billings
12/14/15
6

7. Equity
Discussion
in
a
Law
Firm
• You
can
only
create
long
term
shareholder
value
by
crea8ng
customer
value
• So
the
introduc8on
of
a
permanent
equity
model
fits
perfectly
with
many
firms
current
strategy
to
focus
the
business
on
the
market
• There
are
many
varia8ons
possible
in
an
equity
model:
• Who
gets
it?
• Just
partners,
or
some
senior
lawyers
• Do
re8red
partners
keep
it
for
a
period
• Is
it
an
inside
model
–
or
an
outside
model
–
or
a
mix
of
both?
• Do
partners
have
to
buy
the
equity
–
or
is
it
granted
in
reflec8on
of
value
already
created?
• How
do
you
decide
who
gets
what
to
begin
with?
• How
do
you
revamp
the
compensa8on
system
to
fit
with
an
equity
model?
• Base
pay
• Bonus
based
on
performance
–
30%
paid
as
shares
–
or
some
other
number
• Dividends
or
capital
growth
model,
or
both
• And
many
other
factors
12/14/15
7

8. Equity
Discussion
in
a
Law
Firm
• You
can
see
from
the
next
set
of
slides
that
there
is
significant
growth
in
market
value
for
those
professional
services
firms
that
have
gone
down
the
equity
path
12/14/15
8
Mark
Cap
Y1
Mark
Cap
Now
Time
Frame
$mill
$mill
Years
Slater
&
Gordon
108
1588
8
IPH
331
775
.5
Shine
155
572
2
Accenture
5727
55407
14
Moelis
383
603
1
Evercore
96
1914
9
Greenhill
538
1129
11

9. Slater & Gordon – IPO case study
 IPO for general corporate purposes / working capital and repayment of debt
 Significant share price appreciation (~657%) and multiple expansion since listing with high level of
M&A activity
 Stated dividend policy 40 – 50% of NPAT (fully franked) at IPO
December 14, 2015
Source: Capital IQ
Note: Market data as at 25 March 2015
Slater & Gordon has a 30 June year end
9
IPO snapshot Trading performance since IPO Recent corporate activity
Financial performanceMultiple performance
–
2.00
4.00
6.00
8.00
10.00
Slater & Gordon (A$/share)
A$/share (indexed to Slater &
–
20.0x
EV / NTM Revenue (x) EV / NTM EBITDA (x)
Multiple (x)
Offering details
IPO date date 21 May 2007
Ticker / exchange code SGH / ASX
Offering details
Offer price A$/share A$1.00/share
Shares issued m shares 35.0m
Offering size A$m A$35.0m
New money A$m 50.6% A$17.7m
Selldown A$m 49.4% A$17.3m
Capitalisation At IPO Current
Issue price A$/share 1.00 7.57
(×) Shares outs. m shares 107.8 209.7
Market cap. A$m 107.8 1,587.7
(+) Total debt A$m 7.1 179.8
(–) Cash & equiv. A$m (1.7) (39.0)
(+) Minorities A$m – 0.3
EV A$m 113.2 1,728.8
Valuation multiples
EV / LTM EBITDA x 8.0x 14.8x
EV / NTM EBITDA x 7.1x 12.9x
LTM P / E x 11.9x 22.1x
NTM P / E x 9.8x 18.8x
A$m FY12A FY13A FY14A FY15E FY16E
Revenue 213.8 294.2 411.8 517.2 602.6
% growth 20.1% 37.6% 40.0% 25.6% 16.5%
EBITDA 47.0 72.6 98.0 123.0 145.0
% margin 22.0% 24.7% 23.8% 23.8% 24.1%
EBIT 43.3 67.6 91.0 115.5 137.5
% margin 20.3% 23.0% 22.1% 22.3% 22.8%
Adj. net income 32.4 41.5 61.1 77.0 91.9
% margin 15.1% 14.1% 14.8% 14.9% 15.3%
Target Ann. date Close date. Value
All States Legal Co 12-Aug-14 1-Nov-14 A$42.5m
Pannone Solicitors 28-Nov-13 14-Feb-14 £33.0m
Fentons Solicitors 20-Aug-13 27-Sep-13 A$55.0m
Goodmans Law & TaylorVinters 7-May-13 30-Aug-13 A$19.8m
Russell Jones & Walker 30-Jan-12 30-Apr-12 £53.8m
Keddies Lawyers 26-Oct-10 11-Jan-11 A$35.0m
Trilby Misso Lawyers 27-Jun-10 13-Aug-10 A$57.1m

10. IPH Limited – IPO case study
 IPO to provide existing owners with exit opportunity and repayment of debt facilities
 Share price appreciation of ~134% since IPO in November 2014
 Stated dividend policy of ~80 – 90% of NPAT at IPO
December 14, 2015
Source: Capital IQ
Note: Market data as at 25 March 2015
IPH has a 30 June year end
10
IPO snapshot Trading performance since IPO Recent corporate activity
Financial performanceMultiple performance
Offering details
IPO date date 19 November 2014
Ticker / exchange code IPH / ASX
Offering details
Offer price A$/share A$2.10/share
Shares issued m shares 79.0m
Offering size A$m A$165.9m
New money A$m – –
Selldown A$m 100.0% A$165.9m
Capitalisation At IPO Current
Issue price A$/share 2.10 4.92
(×) Shares outs. m shares 157.6 157.6
Market cap. A$m 330.9 775.2
(+) Total debt A$m 16.8 13.3
(–) Cash & equiv. A$m (3.2) (4.8)
(+) Minorities A$m – –
EV A$m 350.9 783.7
Valuation multiples
EV / LTM EBITDA x 11.7x 25.1x
EV / NTM EBITDA x 10.6x 19.0x
LTM P / E x 15.1x 39.0x
NTM P / E x 13.9x 25.5x
A$m FY13A FY14A FY15E FY16E
Revenue 74.2 79.2 89.5 99.9
% growth n.a. 6.7% 13.0% 11.6%
EBITDA 28.6 30.0 38.5 44.1
% margin 38.5% 37.9% 43.0% 44.2%
EBIT 27.3 29.2 37.3 42.9
% margin 36.8% 36.9% 41.7% 42.9%
Adj. net income 20.3 21.9 28.1 32.7
% margin 27.4% 27.7% 31.3% 32.7%
–
50.0x
EV / NTM Revenue (x) EV / NTM EBITDA (x)
Multiple (x)
1.50
2.50
3.50
4.50
5.50
Nov-14 Dec-14 Jan-15 Feb-15 Mar-15
IPH (A$/share) S&P/ASX 200 (indexed)
A$/share (indexed to IPH)
No recent corporate activity

11. Shine Corporate – IPO case study
 IPO for working capital to support organic growth and provide balance sheet flexibility
 Share price appreciation of ~232% since IPO in May 2013
 Stated dividend policy ~40% of NPAT (fully franked) at IPO
December 14, 2015
Source: Capital IQ
Note: Market data as at 25 March 2015
Shine Corporate has a 30 June year end
11
IPO snapshot Trading performance since IPO Recent corporate activity
Financial performanceMultiple performance
Offering details
IPO date date 15 May 2013
Ticker / exchange code SHJ / ASX
Offering details
Offer price A$/share A$1.00/share
Shares issued m shares 45.0m
Offering size A$m A$45.0m
New money A$m 33.3% A$15.0m
Selldown A$m 66.7% A$30.0m
Capitalisation At IPO Current
Issue price A$/share 1.00 3.32
(×) Shares outs. m shares 155.0 172.4
Market cap. A$m 155.0 572.4
(+) Total debt A$m 23.7 19.9
(–) Cash & equiv. A$m (14.2) (9.5)
(+) Minorities A$m – –
EV A$m 164.5 582.7
Valuation multiples
EV / LTM EBITDA x 6.1x 15.7x
EV / NTM EBITDA x 5.0x 12.1x
LTM P / E x 9.0x 23.8x
NTM P / E x 7.3x 18.2x
0.50
1.00
1.50
2.00
2.50
May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14
Shine (A$/share) S&P/ASX 200 (indexed)
A$/share (indexed to Shine)
–
20.0x
May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14
EV / NTM Revenue (x) EV / NTM EBITDA (x)
Multiple (x)
A$m FY12A FY13A FY14A FY15E FY16E
Revenue 88.4 105.4 115.8 151.2 169.4
% growth 24.2% 19.2% 9.8% 30.6% 12.0%
EBITDA 26.6 27.7 34.4 46.1 50.3
% margin 30.1% 26.3% 29.8% 30.5% 29.7%
EBIT 26.1 26.1 32.6 44.0 48.2
% margin 29.5% 24.8% 28.2% 29.1% 28.5%
Adj. net income 17.7 17.5 22.2 29.9 33.1
% margin 20.1% 16.6% 19.2% 19.8% 19.6%
Target Ann. date Close date. Value
Acquired Sciaccas Lawyers and Sciaccas
Family Lawyers
23-Oct-14 n.a. A$8.8m
Acquired Emanate Legal and Stephen
Browne Personal Injury Lawyers
12-Jun-14 31-Jul-14 A$36.0m
Follow-on offering 9-Jul-14 9-Jul-14 A$29.5m
Acquired Cleary & Lee Lawyers 22-Nov-12 28-Nov-12 n.a.

12. Accenture – IPO case study
 IPO to cover expenses from corporate transition, debt repayment, general corporate and working capital
 Share price appreciation of ~508% since IPO in July 2001
 Policy of no dividends at IPO
December 14, 2015
Source: Capital IQ
Note: Market data as at 25 March 2015
Financials calendarised to a 30 June year end and converted to A$ at current rate.Accenture has a 31 August year end
12
IPO snapshot Trading performance since IPO Recent corporate activity
Financial performanceMultiple performance
Offering details
IPO date date 19 July 2001
Ticker / exchange code ACN / NYSE
Offering details
Offer price US$/share US$14.50/share
Shares issued m shares 115.0m
Offering size US$m US$1,667.5m
New money US$m 100.0% US$1,667.5m
Selldown US$m – –
Capitalisation At IPO Current
Issue price US$/share 14.50 88.21
(×) Shares outs. m shares 395.0 628.1
Market cap. US$m 5,727.2 55,407.3
(+) Total debt US$m 569.0 26.8
(–) Cash & equiv. US$m (1,871.0) (4,474.8)
(+) Minorities US$m 209.0 534.9
EV US$m 4,634.2 51,494.1
Valuation multiples
EV / LTM EBITDA x 1.5x 10.7x
EV / NTM EBITDA x 2.5x 10.2x
LTM P / E x 1.9x 18.9x
NTM P / E x n.a. 18.4x
A$m FY12A FY13A FY14A FY15E FY16E
Revenue 35,013 36,257 37,935 38,860 40,750
% growth 10.6% 3.6% 4.6% 2.4% 4.9%
EBITDA 5,589 5,896 6,217 6,455 6,755
% margin 16.0% 16.3% 16.4% 16.6% 16.6%
EBIT 4,849 5,140 5,431 5,612 5,953
% margin 13.9% 14.2% 14.3% 14.4% 14.6%
Adj. net income 3,500 3,779 3,960 4,059 4,299
% margin 10.0% 10.4% 10.4% 10.4% 10.6%
–
50.0x
Jul-01 Jul-03 Jul-05 Jul-07 Jul-09 Jul-11 Jul-13
EV / NTM Revenue (x) EV / NTM EBITDA (x)
Multiple (x)
–
20.00
40.00
60.00
80.00
100.00
Jul-01 Jul-03 Jul-05 Jul-07 Jul-09 Jul-11 Jul-13
Accenture (US$/share) S&P 500 (indexed)
US$/share (indexed to Accenture)
 Over 120 announced M&A transactions since listing
Target File date Offer date. Value
Follow-on offering 13-Feb-04 28-Apr-04 US$1,175.0m
Follow-on offering 18-Apr-03 23-Sep-03 US$1,722.0m
Follow-on offering 26-Sep-02 5-Nov-02 US$40.36m
Follow-on offering 19-Mar-02 16-May-02 US$1,869.52m

13. Moelis & Company – IPO case study
 IPO to provide existing owners and partners with exit opportunity and strengthen branding
 Share price appreciation of ~22% since IPO in April 2014
 Policy of a quarterly cash dividend initially of US$0.17/share stated at IPO
December 14, 2015
Source: Capital IQ
Note: Market data as at 25 March 2015
Financials calendarised to a 30 June year end and converted to A$ at current rate. Moelis & Company has a 31 December year end
(1) Includes 975,000 overallotment shares
13
IPO snapshot Trading performance since IPO Recent corporate activity
Financial performanceMultiple performance
Offering details
IPO date date 16 April 2014
Ticker / exchange code MC / NYSE
Offering details
Offer price US$/share US$25.00/share
Shares issued m shares 7.5m(1)
Offering size US$m US$186.9m
New money US$m 100.0% US$186.9m
Selldown US$m – –
Capitalisation At IPO Current
Issue price US$/share 25.00 30.55
(×) Shares outs. m shares 15.3 19.7
Market cap. US$m 383.3 603.2
(+) Total debt US$m – –
(–) Cash & equiv. US$m (118.0) (197.9)
(+) Minorities US$m 78.0 61.0
EV US$m 343.3 466.3
Valuation multiples
EV / LTM EBITDA x 4.0x 3.7x
EV / NTM EBITDA x 1.8x 2.0x
LTM P / E x 39.3x n.m.
NTM P / E x n.a. 16.6x
A$m FY12A FY13A FY14A FY15E FY16E
Revenue 416.7 508.1 592.8 706.1 801.7
% growth n.a. 21.9% 16.7% 19.1% 13.5%
EBITDA n.a. n.a. n.a. 250.5 316.2
% margin n.a. n.a. n.a. 35.5% 39.4%
EBIT n.a. n.a. n.a. 209.0 248.5
% margin n.a. n.a. n.a. 29.6% 31.0%
Adj. net income 17.0 67.2 42.8 63.3 137.8
% margin 4.1% 13.2% 7.2% 9.0% 17.2%
 No M&A transactions since listing
Target File date Offer date. Value
Buyback 5-Feb-15 n.a. US$25.0m
Follow-on offering 18-Nov-14 18-Nov-14 US$174.6m
20.00
22.50
25.00
27.50
30.00
32.50
35.00
37.50
40.00
Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15
Moelis (US$/share) S&P 500 (indexed)
US$/share (indexed to Moelis)
12.0x
17.0x
22.0x
Jul-14 Sep-14 Nov-14 Jan-15 Mar-15
NTM P / E (x)
Multiple (x)

14. Evercore Partners – IPO case study
 IPO to raise funds to repay outstanding debt
 Share price appreciation of ~147% since IPO in August 2006
 Policy of a quarterly cash dividend initially of US$0.07/share stated at IPO
December 14, 2015
Source: Capital IQ
Note: Market data as at 25 March 2015
Financials calendarised to a 30 June year end and converted to A$ at current rate. Evercore has a 31 December year end
(1) Includes 592,500 overallotment shares (2) Excludes
investments / divestments made by Evercore’s funds
14
IPO snapshot Trading performance since IPO Recent corporate activity(2)
Financial performanceMultiple performance
Offering details
IPO date date 11 August 2006
Ticker / exchange code EVR / NYSE
Offering details
Offer price US$/share US$21.00/share
Shares issued m shares 4.5m(1)
Offering size US$m US$95.4m
New money US$m 100.0% US$95.4m
Selldown US$m – –
Capitalisation At IPO Current
Issue price US$/share 21.00 51.88
(×) Shares outs. m shares 4.6 36.9
Market cap. US$m 96.3 1,913.7
(+) Total debt US$m 0.4 234.3
(–) Cash & equiv. US$m (3.0) (468.7)
(+) Minorities US$m 21.1 165.0
EV US$m 114.8 1,844.2
Valuation multiples
EV / LTM EBITDA x 3.7x 9.8x
EV / NTM EBITDA x 1.7x 6.0x
LTM P / E x 29.4x 24.9x
NTM P / E x n.a. 16.0x
A$m FY12A FY13A FY14A FY15E FY16E
Revenue 750.6 899.0 1,072.4 1,295.0 1,498.2
% growth 30.0% 19.8% 19.3% 20.8% 15.7%
EBITDA 171.1 214.0 252.1 327.5 426.8
% margin 22.8% 23.8% 23.5% 25.3% 28.5%
EBIT 151.4 196.5 232.7 305.6 401.8
% margin 20.2% 21.9% 21.7% 23.6% 26.8%
Adj. net income 90.0 115.8 145.3 191.7 246.5
% margin 12.0% 12.9% 13.5% 14.8% 16.5%
Target Ann. date Close date Value
Buyback 27-Feb-15 n.a. US$350.0m
Buyback 23-Oct-13 n.a. US$49.8m
Follow-on offering 6-Jun-13 16-Jun-11 US$155.2m
Buyback 25-Oct-12 n.a. US$50.8m
Follow-on offering 13-Jun-11 15-Sep-10 US$72.6m
Acquisition of The Lexicon Partnership 7-Jun-11 19-Aug-11 US$157.6m
Buyback 28-Oct-10 30-Apr-13 US$51.0m
Follow-on offering 13-Sep-10 4-Aug-09 US$70.7m
Acquisition of Atalanta Sosnoff Capital 5-Mar-10 31-May-10 US$83.8m
Follow-on offering 29-Jul-09 17-May-07 US$123.9m
Private Placement to Mizuho Capital 21-Aug-08 28-Aug-08 US$120.0m
–
20.00
40.00
60.00
80.00
Evercore (US$/share) S&P 500 (indexed)
US$/share (indexed to Evercore)
15.0x
25.0x
35.0x
45.0x
Sep-06 Nov-06 Jan-07 Mar-07
NTM P / E (x)
Multiple (x)

15. Greenhill & Co. – IPO case study
 IPO for general corporate purposes including repayment of bank debt and setting up new merchant banking funds
 Share price appreciation of ~127% since IPO in August 2006
 Policy of a quarterly cash dividend initially of US$0.08/share stated at IPO
December 14, 2015
Source: Capital IQ
Note: Market data as at 25 March 2015
Financials calendarised to a 30 June year end and converted to A$ at current rate. Grenhill has a 31 December year end
(1) Includes 750,000 overallotment shares
15
IPO snapshot Trading performance since IPO Recent corporate activity
Financial performanceMultiple performance
Offering details
IPO date date 6 May 2004
Ticker / exchange code GHL / NYSE
Offering details
Offer price US$/share US$17.50/share
Shares issued m shares 5.8m(1)
Offering size US$m US$100.6m
New money US$m 100.0% US$100.6m
Selldown US$m – –
Capitalisation At IPO Current
Issue price US$/share 17.50 39.66
(×) Shares outs. m shares 30.8 28.5
Market cap. US$m 538.1 1,129.5
(+) Total debt US$m 11.9 35.6
(–) Cash & equiv. US$m (64.3) (44.7)
(+) Minorities &
other US$m 21.1 18.3
EV US$m 506.8 1,138.7
Valuation multiples
EV / LTM EBITDA x 5.5x 16.7x
EV / NTM EBITDA x n.a. 13.2x
LTM P / E x 13.5x 27.7x
NTM P / E x n.a. 21.4x
A$m FY12A FY13A FY14A FY15E FY16E
Revenue 378.8 368.6 361.6 382.8 430.6
% growth 7.1% (2.7%) (1.9%) 5.9% 12.5%
EBITDA 108.2 98.6 94.7 100.9 117.5
% margin 28.6% 26.7% 26.2% 26.4% 27.3%
EBIT 98.4 91.1 89.8 99.9 117.8
% margin 26.0% 24.7% 24.8% 26.1% 27.3%
Adj. net income 55.2 56.6 57.4 64.4 80.3
% margin 14.6% 15.3% 15.9% 16.8% 18.6%
Target Ann. date Close date Value
Follow-on offering 3-May-10 3-May-10 US$253.4m
Follow-on offering 18-Nov-09 18-Nov-09 US$206.3m
Follow-on offering 29-Jul-09 30-Jul-09 US$228.0m
Follow-on offering 5-Nov-08 6-Nov-08 US$196.0m
Acquired Cogent Partners 10-Feb-15 n.a. US$101.1m
Buyback 28-Jan-15 n.a. US$75.0m
Buyback 29-Jan-14 n.a. US$15.44m
Buyback 23-Jan-13 n.a. US$42.53m
Buyback 21-Apr-10 n.a. US$134.0m
Acquired Caliburn Partnership 16-Mar-10 1-Apr-10 A$200.8m
Buyback 22-Dec-09 22-Dec-09 US$24.4m
–
50.00
100.00
Greenhill (US$/share) S&P 500 (indexed)
US$/share (indexed to Greenhill)
15.0x
25.0x
Jun-04 Aug-04 Oct-04
EV / NTM Revenue (x) EV / NTM EBITDA (x)
Multiple (x)