Finding that its recipe for encouraging deals and generating fees has been a regional success, Houlihan Lokey Howard & Zukin Inc. is rolling out its Business Forum networking sessions on a national scale.
Formed two years ago in Santa Barbara, the L.A.-based investment bank’s forums are designed for exclusivity and speed. Participants have only 1 1/2 hours during monthly meetings to initiate or secure deals and provide fellow members with contacts for their transactions.
Tracy Albert, a Houlihan director and originator of the networking program, said the investment bank has already generated several million dollars in fees from contacts and deals made at the gatherings.
Most Business Forums will be capped at 35 members. Besides Santa Barbara, there are monthly meetings in Newport Beach, Westwood and downtown L.A. By the end of September, the firm plans to set up Forums in Riverside, San Diego, San Francisco and San Jose, before rolling out operations next year in Atlanta, Chicago, Dallas, Minneapolis, New York and Washington.
“It’s a very direct way of generating business and not having to waste a lot of time,” said Albert. “The group really provides tremendous professional resource opportunities in addition to potential deal flow.”
Members must have an annual income of at least $400,000 (groups meeting outside of L.A. County require only $200,000 in income); provide at least five qualified leads per quarter in support of other members’ deals; and introduce the group to at least one guest for membership consideration every three months.
Dues are $1,000 annually in Los Angeles, $650 elsewhere. Houlihan lowered the criteria and fees outside the city to attract business professionals who Albert said unfamiliar with the benefits of upscale networking.
The group is tailored to professional services providers accountants, lawyers, bankers, consultants, financiers and others who serve middle-market businesses with annual revenues of $20 million to $500 million.
Lawrence Hurwitz, chairman of Lawrence Financial Group Inc., said he has closed several deals, including one in which he secured an $80 million loan for a company.
“Everybody needs more business,” said Hurwitz. “There are always new players, firms that want to be more active in the market, coming to L.A. from the East Coast and overseas and groups splitting off from bigger firms.”
