2.2.0.7falseAquisition0203 - Disclosure - Aquisitiontruefalsefalsefalse1USDfalsefalseUSDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDEPSDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0SharesStandardhttp://www.xbrl.org/2003/instancesharesxbrli0$20ghl_AquisitionAbstractghlfalsenadurationAquisition.falsefalsefalsefalsefalsetruefalsefalsefalsefalsefalsefalse1falsefalsefalsefalse00falsefalsefalsexbrli:stringItemTypestringAquisition.false31us-gaap_BusinessCombinationDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabelfalse1falsefalsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Note 3 - us-gaap:BusinessCombinationDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 3 — Acquisition</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     On April 1, 2010, pursuant to the Share Sale Agreement, the Company acquired 100% ownership of
Caliburn from its founding partners (the “Acquisition”) in exchange for (i) 1,099,874 shares of
Greenhill common stock, with an Acquisition date fair value of $90.2 million and (ii) 1,099,877
shares of contingent convertible preferred stock (“Performance Stock”) that pays no dividend and,
if certain revenue levels are achieved on the third or fifth anniversary of the Acquisition, will
convert into additional shares of Greenhill common stock. If those revenue levels are not achieved,
the Performance Stock will be cancelled for each such period as of the third and fifth
anniversaries of closing, respectively. The fair value of the Performance Stock on the Acquisition
date was $47.0 million and has been recorded as a component of equity in accordance with ASC 805.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Acquisition has been accounted for using the purchase method of accounting and the results
of operations for Greenhill Caliburn have been included in the condensed consolidated statement of
income from the date of acquisition. The total purchase price of AUS $149.6 million ($137.2
million) has been allocated to the assets acquired and liabilities assumed based on their estimated
fair values as of April 1, 2010, the date of the acquisition, as follows (USD in thousands,
unaudited):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Assets acquired and liabilities assumed:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Assets:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Cash
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">4,712</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Other current assets
</div></td>
<td> </td>
<td> </td>
<td align="right">3,887</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Property and equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">643</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Deferred compensation plan investments
</div></td>
<td> </td>
<td> </td>
<td align="right">11,295</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Deferred tax assets
</div></td>
<td> </td>
<td> </td>
<td align="right">3,756</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Identifiable intangible assets
</div></td>
<td> </td>
<td> </td>
<td align="right">8,568</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Goodwill
</div></td>
<td> </td>
<td> </td>
<td align="right">127,972</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:45px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:60px; text-indent:-15px">Total assets
</div></td>
<td> </td>
<td> </td>
<td align="right">160,833</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Liabilities:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Other current liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">5,438</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:45px; text-indent:-15px">Deferred compensation payable
</div></td>
<td> </td>
<td> </td>
<td align="right">11,295</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:45px; text-indent:-15px">Due to affiliates
</div></td>
<td> </td>
<td> </td>
<td align="right">6,861</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:45px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:60px; text-indent:-15px">Total liabilities
</div></td>
<td> </td>
<td> </td>
<td align="right">23,594</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:45px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:75px; text-indent:-15px">Purchase price
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">137,239</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:45px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair value of the identifiable intangible assets acquired, which consist of the
trade name, the backlog of investment banking client assignments that existed at the time of the
closing, and customer relationships, is based, in part, on a valuation using an income approach,
market approach or cost approach, as appropriate, and has been included in other assets on the
condensed consolidated statement of financial
condition. The estimated fair value ascribed to the identifiable intangible assets will be
amortized on a straight-line basis over the estimated remaining useful life of each asset over
periods ranging between 2 to 3 years. For the three months and nine months ended September 30,
2010, the Company recorded $0.7 million and $1.5 million, respectively, of amortization expense in
respect of these assets. The excess of the purchase price over the fair value of net assets
acquired has been recorded as goodwill.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In addition to the equity consideration provided to the sellers, under the terms of the Share
Sale Agreement, the selling shareholders and certain other non-founding partners received post
closing distributions of accrued profits prior to the acquisition date of approximately AUS $7.6
million ($6.9 million).
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In connection with the Acquisition the Company assumed Caliburn’s deferred compensation plan
and acquired a corresponding amount of investments of approximately AUS $12.3 million ($11.3
million). Under this plan a portion of certain employees’ compensation was deferred and invested in
cash or, at the election of each respective employee, in certain mutual fund investments. The cash
and mutual fund investments will be distributed to those employees of Greenhill Caliburn, who were
employed on the date of acquisition, over the period 2010 to 2016. As of September 30, 2010
distributions of AUS $4.0 million ($3.5 million) were made from the mutual fund investments since
the date of the acquisition in accordance with the terms of the plan. Both the invested assets and
the deferred compensation liability relating to this plan have been recorded on the consolidated
statement of financial condition as components of other investments and compensation payable,
respectively. Subsequent to the Acquisition the Company has discontinued future participation in
the plan. See “Note 4 – Investments – Other Investments”.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In conjunction with the Acquisition, the Company granted at closing 275,130 restricted stock
units to current employees of Greenhill Caliburn. These awards will vest ratably over five years
from the date of grant subject to continued employment and will amortize over the service period.
In addition, the Company granted at closing 212,625 performance based restricted stock units
(“Performance RSUs”). The Performance RSUs will vest on the third and fifth anniversaries of the
closing subject to the achievement of the same revenue targets as the Performance Stock.
Amortization of each tranche of the Performance RSUs will begin at the time it is deemed probable
that the revenue targets will be achieved and the value of the award at that date will be amortized
over the remaining vesting period of each award. If the performance requirements for the
Performance RSUs are not achieved the Performance RSUs will be cancelled and no amount will be
expensed.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Set forth below are the Company’s summary unaudited pro forma results of operations for the
three and nine months ended September 30, 2010 and 2009. The unaudited pro forma results of
operations for the nine months ended September 30, 2010 include the historical results of the
Company and give effect to the Acquisition if it had occurred on January 1, 2010. The unaudited
results of operations for the three and nine months ended September 30, 2009 include the historical
results of the Company and give effect to the Acquisition if it had occurred on January 1, 2009.
See “Note 7 – Equity” and “Note 8 – Earnings per Share”.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The unaudited pro forma results of operations do not purport to represent what the Company’s
results of operations would actually have been had the Acquisition occurred as of January 1, 2010
or January 1, 2009, as the case may be, or to project the Company’s results of operations for any
future period. Actual future results may vary considerably based on a variety of factors beyond the
Company’s control.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>For the Three Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 0px solid #000000"><b>(in millions, unaudited)</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>(actual)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>(pro forma)</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenues
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">84.1</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">127.1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income before taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">23.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">54.5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income allocated to common stockholders
</div></td>
<td> </td>
<td> </td>
<td align="right">14.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33.9</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Diluted earnings per share
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">0.47</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1.10</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>For the Nine Months Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>September 30,</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>(in millions, unaudited)</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>(pro forma)</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Revenues
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">220.8</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">254.6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income before taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">57.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">96.5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net income allocated to common stockholders
</div></td>
<td> </td>
<td> </td>
<td align="right">32.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">58.2</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Diluted earnings per share
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">1.06</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1.89</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The pro forma results include (i) an adjustment of Caliburn’s compensation expense to
Greenhill’s historical ratio of compensation expense to revenue for each period presented, (ii) the
elimination of professional fees incurred by Caliburn in connection with the Acquisition in the
three months ended March 31, 2010, and (iii) the recording of income tax expense resulting from the
pro forma adjustments before tax at the Australian effective rate of 30 percent. The calculation of
pro forma diluted earnings per share includes 1,099,874 common shares issued to the selling
shareholders. The calculation of pro forma diluted shares does not include the contingent
convertible preferred shares which may be converted in aggregate to 1,099,877 common shares in the
event that Greenhill Caliburn achieves the three and five year revenue thresholds. See “Note 8 –
Earnings Per Share”.
</div>
</div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<!-- Begin Block Tagged Notefalsefalsefalseus-types:textBlockItemTypetextblockDescription of a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. This element may be used as a single block of text to encapsulate the entire disclosure (including data and tables) regarding business combinations, including leverage buyout transactions (as applicable).Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph F4
-Subparagraph e
-Appendix F
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