erik: this gives us a sense of how houlihan lokey has done. like i say, everyone tends to of the clientso you are trying to recruit, where is that business coming from? what companies are looking for your services? scott: it is twofold. one of the great exports of the united states has been complicated balance sheets. more and more companies are putting in lots of layers of debt. at any given point in time, even in a low default rate like we are in today, you start to see companies running into this rest, whether it is region, sector related, or idiosyncratic risk of something going on with the company. when you take a look at that, that drives a tremendous amount of restructuring. m&a is something that is proliferating around the world. when i started doing this 30 years ago, the bulk of the m&a activity was in the u.s., today, we are about one third, europe and the rest of the world are about one third. lastly, it is the changes in who provides capital to companies today. public toshift from private debt markets. scott: exactly. erik: restru
