This week, investment bank Lazard Ltd. (NYSE: LAZ) reported its quarterly earnings. As should be no surprise, the results were solid, with profits of $61.5 million, or 53 cents.
True, this compares to $62.9 million, or $0.60 per share in earnings in the same period a year ago. Then again, investment banking can be volatile -- a couple engagements can have a big impact. And there is lots of competition from biggies like Goldman Sachs Group (NYSE: GS) and Morgan Stanley (NYSE: MS).
But, with a hefty stock price, Lazard has also been buying up some rivals, such as Australia-based Carnegie, Wylie & Co.
What's more, Lazard's Chairman, Steve Golub, had some interesting insights regarding the problems with private equity and tightening credit.
Interestingly enough, it could be a boost for M&A. How? Well, first of all, valuations are better.
And, assuming private equity firms are having issues, it could make it easier for strategic buyers to purchase companies.
Assuming all this pans it, it would of course be a very nice thing for Lazard.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
