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Greenhill & Co. (NYSE: GHL), a New York-based investment bank, has announced plans to a leveraged recap and share repurchase. The multi-stage transaction would include $300 million in financing from Goldman Sachs, which would mostly be used to buy back stock. The investment bank's founder Robert Greenhill and its CEO Scott Bok each will buy $10 million worth of shares, with Bok taking a 90% salary cut. Overall, Greenhill could repurchase up to 30% of its outstanding stock.
- Why it's the BFD: Because this is Greenhill taking a big step toward re-privatization, 13 years after becoming one of the first M&A boutiques to go public. The firm's shares have plummeted by more than 75% since the beginning of 2014.
- Bottom line: "Greenhill ranks 49th this year among global deal advisers, down from 16th in 2012, according to research firm Dealogic. Year-to-date revenue is 20% below 2016 and, with few big fees coming soon, executives have signaled the third quarter is likely to be another tough one." — Liz Hoffman, WSJ
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- More from the comparative analysis by Kaal and Dell'Erba: We interpret parts of the data as suggesting that larger private investment fund advisers in Europe may be more willing to make the required investments into blockchain infrastructure whereas in the US the legacy systems utilized by larger private investment fund advisers create barriers to entry for larger advisers to invest in, and utilize blockchain technology."