Houlihan Smith & Company

Houlihan Smith & Company
Company type	Private
Industry	Investment banking, Financial services
Founded	1996
Founder	Richard Houlihan, Andy Smith
Defunct	2011
Fate	Restructured as Houlihan Capital
Headquarters	Chicago, United States
Area served	United States (California, Florida, Illinois, New York, Washington, and others)
Key people	Richard Alfred Houlihan (Founder), Andrew David Smith (Founder), Charles Botchway (Owner)
Products	Financial advisory, capital raising solutions, financial opinions, mergers and acquisitions advisory, financing arrangements, corporate consulting
Number of employees	125

Adapted from the English Wikipedia article Houlihan Smith & Company, available under CC BY-SA 4.0Updated 25 July 2025

Houlihan Smith & Company was an investment banking enterprise established in 1996 by Richard Houlihan and Andy Smith, delivering financial advisory and capital raising solutions to both public and private sector clients. In 2011, the company restructured as Houlihan Capital, concentrating on services such as financial opinions, advisory on mergers and acquisitions, financing arrangements, and corporate consulting. Functioning as a broker-dealer and registered member of FINRA, Houlihan operated autonomously with licenses in eight states including California, Florida, Illinois, New York, and Washington. The firm employed approximately 125 specialists across offices located in Chicago, New York, and Los Angeles. An Employee Stock Ownership Plan was introduced in 2006.

History

The firm was founded by Richard Alfred Houlihan—previously chairman at Houlihan Lokey Howard & Zukin—and M&A expert Andrew David Smith, merging their strengths in intricate business valuation and transaction advisory. Among their significant projects was delivering a $12 billion solvency opinion during Reliant Energy’s financial restructuring. Annually, the company conducted more than 400 valuations and financial opinions. Ownership stakes were divided between Houlihan and Smith (each holding between 25% and 50%) and Charles Botchway (holding between 10% and 25%).

In response to heightened oversight of corporate boards and executives, Houlihan developed the Houlihan Smith Compendia Series—authoritative guides on fiduciary responsibilities highlighting the business judgment rule and Entire Fairness Standard. This initiative established the company as a trusted advisor on governance risk management through independent special committees during conflicted transactions.

During the mid-2000s, the firm broadened its services to include portfolio valuation, sophisticated derivatives appraisal, and investment advisory targeted at hedge funds, private equity firms, and alternative asset managers. This expertise aligned with Financial Accounting Standard No. 157 (FAS 157), which mandates fair value measurement utilizing a three-level input hierarchy; Level 3 inputs—comprising illiquid assets—often require valuation from independent specialists such as Houlihan.

Past operations

From 2006 through 2008, Houlihan performed valuations amounting to billions of dollars for Level 3 securities, collaborating with public corporations, hedge funds, and private equity groups to fulfill financial reporting standards. The firm provided impartial valuations for Auction-Rate Securities (ARS) held by Fortune 1000 companies. These long-term instruments, typically featuring frequent liquidity events through auctions, encountered auction failures beginning in late 2007 due to the credit crisis and market illiquidity. Houlihan partnered closely with clients and Big Four auditors to assess ARS values and occasionally assisted in identifying secondary markets to facilitate portfolio liquidation.

Additionally, Houlihan supported hedge funds and private equity firms by offering portfolio valuation services, M&A advisory, risk assessment, and investment banking solutions. The firm advised on alternative investments as well as complex structured financial products while safeguarding client confidentiality.

The investment banking function was consolidated under Houlihan Smith Capital Markets, which specialized in middle-market deals ranging from $10 million to $250 million. This division completed more than 500 transactions including mergers, capital restructurings, ESOP advisory projects, private placements, and financial restructurings.

Houlihan's unsuccessful litigation and eventual shutdown

In April 2010, Houlihan pursued a temporary restraining order targeting the websites 800notes.com and Whocallsme.com due to unfavorable user-generated remarks about its business methods. The injunction demanded the removal of accurate statements and prohibited user comments associated with Houlihan's phone number, citing allegations of trademark violation and infringement of publicity rights.

Following pro bono legal assistance from Public Citizen on behalf of the websites' operator, a federal court allowed the restraining order to lapse in May 2010 by denying a preliminary injunction. Houlihan withdrew its lawsuit in August 2010. The firm discontinued its operations during the phase addressing attorney fees; subsequently, the defendants requested $137,632 in legal costs. Ultimately, the dispute was resolved with a $35,000 settlement.

This legal challenge represented a notable obstacle that adversely affected Houlihan's operational viability and standing within the financial services sector.

External links

History

Past operations

Houlihan's unsuccessful litigation and eventual shutdown

External links

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