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The same held true for M&A shop Evercore
Like Greenhill, Evercore's results are heavily weighted toward financial advisory, so the great M&A environment gave the company a big push. For the quarter, advisory revenue rose 86% year over year, and for the first nine months of the year, it has increased 91%. Evercore's big deals in the quarter included the Cerberus acquisition of Tower Automotive, and KKR's acquisition of First Data. Still in the firm's hopper going forward: the acquisition of Chatham Energy Partners by IntercontinentalExchange, and Carlyle Group's purchase of ARINC.
Despite this quarter's strong results, I see Evercore as less attractive than Greenhill or Lazard over the near term. The U.S. M&A market, toward which Evercore's more heavily weighted than its two rivals, will likely moderate in the coming quarters, unless there is a significant change in the environment. Evercore has also been doing a lot of work with the major leveraged buyout shops. Though I don't see LBO deal flow totally drying up, the continuing corporate credit crunch means that it should be far less robust going forward than it has been in the past few quarters.
Longer term, though, Evercore is a well-respected name in the M&A business, and it's continuing to build out its team. Expect to continue to hear its name pop up in connection with major deals.
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Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. The Fool's disclosure policy has never once been caught with its pants down. Of course, it doesn't actually wear pants ...