Financial Advisory
Our Financial Advisory business offers corporate, partnership, institutional,
government, sovereign and individual clients across the globe a wide array of
financial advisory services regarding mergers and acquisitions (“M&A”)
and other strategic matters, restructurings, capital structure, capital raising,
corporate preparedness and various other financial matters. We focus on solving
our clients’ most complex issues, providing advice to key decision-makers,
senior management, boards of directors and business owners, as well as governments
and governmental agencies, in transactions that typically are of significant
strategic and financial importance to them.
We continue to build our Financial Advisory business by fostering long-term,
senior level relationships with existing and new clients as their independent
advisor on strategic transactions and other matters. We seek to build and sustain
long-term relationships with our clients rather than focusing simply on individual
transactions, a practice that we believe enhances our access to senior management
of major corporations and institutions around the world. We emphasize providing
clients with senior level focus during all phases of transaction analysis and
execution.
While we strive to earn repeat business from our clients, we operate in a highly
competitive environment in which there are no long-term contracted sources of
revenue. Each revenue-generating engagement is separately negotiated and awarded.
To develop new client relationships, and to develop new engagements from historical
client relationships, we maintain an active dialogue with a large number of
clients and potential clients, as well as with their financial and legal advisors,
on an ongoing basis. We have gained a significant number of new clients each
year through our business development initiatives, through recruiting additional
senior investment banking professionals who bring with them client relationships
and through referrals from directors, attorneys and other third parties with
whom we have relationships. At the same time, we lose clients each year as a
result of the sale or merger of a client, a change in a client’s senior
management, competition from other investment banks and other causes.
We advise clients on a wide range of strategic and financial issues. When we
advise clients on the potential acquisition of another company, business or
certain assets, our services include evaluating potential acquisition targets,
providing valuation analyses, evaluating and proposing financial and structural
alternatives, and rendering, if appropriate, fairness opinions. We also may
advise as to the timing, financing and pricing of a proposed acquisition and
assist in negotiating and closing the acquisition. In addition, we may assist
in executing an acquisition by acting as a dealer-manager in transactions structured
as a tender or exchange offer.
When we advise clients that are contemplating the sale of certain businesses,
assets or an entire company, our services include advising on the sale process
for the situation, providing valuation analyses, assisting in preparing an offering
circular or other appropriate sale materials and rendering, if appropriate,
fairness opinions. We also identify and contact selected qualified acquirors
and assist in negotiating and closing the proposed sale. As appropriate, we
also advise our clients regarding potential financial and strategic alternatives
to a sale, including recapitalizations, spin-offs, carve-outs and split-offs.
We frequently provide advice with respect to the structure, timing and pricing
of these alternatives.
For companies in financial distress, our services may include reviewing and
analyzing the business, operations, properties, financial condition and prospects
of the company, evaluating debt capacity, assisting in the determination of
an appropriate capital structure and evaluating financial and strategic alternatives.
If appropriate, we may provide financial advice and assistance in developing
and seeking approval of a restructuring or reorganization plan, which may include
a plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code or other
similar court administered processes in non-U.S. jurisdictions. In such cases,
we may assist in certain aspects of the implementation of such a plan, including
advising and assisting in structuring and effecting the financial aspects of
a sale or recapitalization, structuring new securities, exchange offers, other
consideration or other inducements to be offered or issued, as well as assisting
and participating in negotiations with affected entities or groups.
When we assist clients in connection with their capital structure, we typically
review and analyze structural alternatives, assist in long-term capital planning
and advise and assist with respect to rating agency discussions and relationships,
among other things.
When we assist clients in connection with corporate preparedness matters, our
services may include reviewing and analyzing the business and financial condition
of the company and assisting in the evaluation of defense measures and strategic
alternatives potentially available to the company.
When we assist clients in raising private or public market financing, our services
include assisting clients in connection with securing, refinancing or restructuring
bank loans or other debt, including convertible securities, originating and
executing, or participating in, public underwritings and private placements
of equity, debt and convertible securities and originating and executing private
placements of partnership and similar interests in alternative investment funds
such as leveraged buyout, mezzanine or real estate focused funds.
We are at the forefront of providing independent advice to governments and governmental
agencies challenged by the current economic environment. Lazard’s Sovereign
Advisory Group has advised a number of countries and institutions with respect
to sovereign debt and other financial matters.
Asset Management
Our Asset Management business offers a broad range of global investment solutions
and investment management services in equity and fixed income strategies, alternative
investments and private equity funds to corporations, public funds, sovereign
entities, endowments and foundations, labor funds, financial intermediaries
and private clients. Our goal in our Asset Management business is to produce
superior risk-adjusted investment returns and provide customized investment
solutions for our clients. Many of our equity investment strategies share an
investment philosophy that centers on fundamental security selection with a
focus on analyzing, among other things, a company’s financial position,
outlook, opportunities and risks, together with its valuation.