Operator: Thank you. [Operator Instructions] Our next question comes from the line of Andrew Nicholas from William Blair.
Andrew Nicholas: Hi, good morning. Thanks for taking my question. I wanted to ask on kind of the M&A opportunity set and your appetite there. It sounds like with the market or I would expect the market being a little bit choppier in the end markets or client budgets rather being a bit harder to pin down that you might be seeing maybe some more opportunities or some more reasonable multiples for potential acquisitions. So if you could touch on that. And then maybe, kind of, bigger picture on the same vein. Do you think that AI and its ability to drive content collection? I think, Phil, you said it reached an inflection point. Does that have an impact on potential multiples as you acquire data assets? Are they easier to get? Are they more valuable now? Just kind of like a bigger picture question on the value of data assets? Thank you.
Phil Snow: Yes, thank you. There’s a lot in there. So on the M&A front, the three buckets that we continue to spend time on are wealth, wealth technology, private markets and filling out, continuing to fill out the portfolio life cycle. So those are the three areas of higher interest. We do look at other interesting content assets. And yes, your instincts are right. The market is beginning to throw a little bit. I think a lot of sponsors are beginning to bring assets to market as they need to show some returns to their clients. I don’t know about the multiples coming down part, but still to be determined. But we’re in a much better position than we were six months ago just because we’ve executed very well on the CUSIP acquisition and effectively gotten our leverage down to the range that we said that we would — we did what we said we were going to do.
So we’re active. We’re looking at tons of stuff. On the AI front, I mean, the — I guess I’ll answer it this way. The — I think the winners in artificial intelligence are going to be people that own the data, right? So we’re in a great position there, because we have a ton of data that we collect ourselves. We obviously have a lot of third-parties that contribute data into our ecosystem, and we connect that well. That’s the real value there. And then clients are also trusting us with their data. So potentially, data — the price of data assets may go up, but also it might be easier for some newer firms to collect data. Now newer firms that have data are going to need very often platforms like FactSet to monetize that. It’s hard to go into a bigger bank or a bigger asset management as a small company and get their attention and get through all of the different things that you need to get through to have that sale.
So we’re in a great position here. And yes, we’re actively looking at what’s available in the market.
Andrew Nicholas: Very helpful. Thank you.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of George Tong from Goldman Sachs.
George Tong: Hi, thanks. Good morning. You talked about restructuring to take out variable and personnel-related costs. Can you elaborate on which parts of the business this is affecting? So how much of this is coming from the desktop business, wealth business, data feeds, et cetera? And how these cost actions are spread out geographically? Whether the actions are more concentrated in certain parts of the world versus others?
Linda Huber: Yes. George, it’s Linda. We’re not going to talk about headcount reductions via firm types. The main reason being that we haven’t made our full decisions yet. We’re looking to put our investments toward our higher value and our emerging opportunities. And obviously, we’re looking really closely at products that we may have had for a while or opportunities that maybe have not lived up to everything that we had hoped for them. Also, in terms of where that headcount might come from, obviously, we have to look hard at our onshore locations to make sure we’re getting the best use out of our resources there. But again, all this is in progress right now, and we’ll have a little bit more information as we go into the Q2 earnings call.
But we haven’t made those decisions yet. And I don’t think we’re going to give that degree of granularity even when we get to that time. We’re looking to take out $10 million to $15 million on cost. We’re going to do it very thoughtfully. Senior management of the firm is looking at this with great caution to make sure that we’re really thoughtful about what we’re doing. This doesn’t come easily to us. So we want to take the time and get it right. And I don’t think we’re going to go into too much more detail than that.
George Tong: Got it. Thanks for the color.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Craig Huber from Huber Research Partners, LLC.
Craig Huber: Great. Thank you. I was hoping you could give a little more clarity on the workflow breakdown in the quarter year-over-year by client type, dealmakers, partners, wealth and institutional buy side? And also curious are you basically assuming the second half of the year, which areas pick up significantly versus what we’ve seen in the first-half? Thanks.
Phil Snow: Well, we won’t give exact numbers. But what I can say is that banking was probably affected the most. And I think you saw that in our press release, right? We saw, I think, much weaker hiring or more churn on the banking side than we did last year. On the asset management side, things came down a little bit, not dreadfully. We did see definitely weaker penetration in the front office. So we’ve begun to see the buy-side clients, I think, reduced headcount a little bit more than they have in the past. But overall, the growth rates of asset management, asset owners and hedge funds didn’t come down dramatically. Wealth went up quite a bit because of that big deal we had in Q1. And then some of the smaller parts of our business like private equity, venture capital and corporations in an environment like this, we did add new logos in both of those areas, but not at the rate that we might have had in previous years. So hopefully, that helps.
