Steven Chubak: Great color. Thank you both for taking my questions.
Scott Beiser: Thanks, Steven.
Operator: And we will go next to Ken Worthington with JPMorgan.
Ken Worthington: Hi. Good afternoon. I think most of my questions have been asked and answered. Maybe just a follow-up on FX and the impact that the euro, the pound and the yen movement are having on revenue and expenses. We are seeing a fair amount of volatility both up and down in FX. So what is sort of the flow-through on currency movements through revenue and expenses?
Scott Beiser: So it’s been negative on the revenue side. I mean overly simplistic, you can look, call it, roughly a quarter of the business is non-U.S. and exchange rates, while they have gotten a little better, depending on what perspective you got here, but the dollar has still strengthened against almost every other currency and so it’s put some negative elements into the amount of revenues that we are ultimately presenting when it gets converted into U.S. dollars. You are going to have the same thing on the expense side. But, ultimately, we have got more revenues and expenses. So the currency exchange marketplace in calendar 2022 has negatively impacted our revenues. Not enough to explain the decline that we or the industry in general have seen, but it’s added just one extra equation to it.
Ken Worthington: And are the expenses pretty much lined up with the revenue in terms of the different major currencies?
Lindsey Alley: Yes. We don’t have any — we are pretty much perfectly hedged with respect to our expenses and our revenues, both compensation and non-compensation.
Scott Beiser: Yeah. We do have some timing issues.
Ken Worthington: Great.
Scott Beiser: Revenues in theory are coming in periodically and bonuses get paid, in our case roughly two times a year. So you are not necessarily perfectly matched from a timing standpoint, but Lindsey’s correct for the most part, where our revenues and costs country by country are reasonably close.
Ken Worthington: Okay. Great. Thank you.
Operator: We will go next to Jim Mitchell with Seaport Global.
Jim Mitchell: Hey. Good afternoon. I will just maybe follow up on the new deal activity. I am just trying to wrap my head around how you are talking about record backlog and new business activity remaining quite robust, but financing markets being mostly shut. It doesn’t seem like there’s any hesitation from your client base to at least engage in new, at least discussions or transactions. So I am just — why do you think that is? What’s driving the, I guess, the urgency to at least have dialogues or sign new deals today if they are worried about financing and macro uncertainty?
Lindsey Alley: Yeah. Good question. I’d say that the M&A process, given the length, which is, call it, nine months on average, a lot of private equity groups are betting, strategics are betting that there will be a soft landing and so why not sign us up, get it started, put your materials together, get ready to go to market and then at the appropriate time in the next one month, two months, three months, five months, we will go to market. So it is really just the groups that are signing us up generally believe that we will see improvements in the economy and they just want to be prepared to take advantage of it. I mean I think that’s the dynamic. If you — if we end up falling into a deeper recession over the next six months, I think, you will see some of those new engagements probably unwind.
