Also in this playlist...
This transcript is automatically generated
But a big deal going down Raymond James Financial acquiring investment bank and brokerage firm Morgan Keegan from regions financial for 930 million dollars.
With more on that deal and -- lives on the road ahead Paul rally is here.
CEO of Raymond James Paul -- you to be here.
How good was the price one analyst was quoted as saying is a reasonable price do you think you've got a bargain basement deal.
Now I think it was a fair price you know we're.
Purchase that and a down market -- you know.
Certainly a volatile market and I think the price reflected that we think that the full.
Earnings potential the company when -- market returns will make it a very good price but we have to wait for the market to return and execute were very happy where we ended up from a price standpoint.
Any time a firm buys a brokerage firm it is all about the brokers and advisors who work at that firm.
The sale of -- dean Kagan took from June of last year until now.
How many of the good brokers already headed for the hills and left the firm potentially.
You know it's amazing how stable -- people of then -- firms are cultures are very similar.
We've always bragged that we've had less than 1% regrettable -- troop attrition from our financial advisors.
There firm through this downturn some of the issues they've had their parent going through some restructuring issues though with -- Have been very very loyal very very study.
We also think because of the cultural -- were both.
Kind of conservative long term investors their -- The branches they operate very similar -- that we think it'll be an easy transition formats why we're willing.
To do such a large acquisition.
Because we think the combination with the cultures will work very very well.
But you are gonna make retention payments to how many brokers how much money are we talking about and also what about.
Contracts -- you'll force your top producers and in the top executives at Morgan caved in to sun.
But a few force anyone in this kind of business there or not it's very competitive -- -- -- of the -- Unlike I think -- encourage them decide -- did that it -- that I knew that I should plan you get you.
Do you guys did so you're -- you you know what I'm saying is that fact that it's look look look look at what.
The senior leadership is very committed to the say they think the cultures are -- good match and they have signed on and some agreements to stay at the close of the transaction.
We will go to the financial advisors.
And offer them some retention but honestly because of the cultural thirds the increase in technology and products we give them.
They're gonna build operate -- same branch managers and their system and with the technology and other product availability we give them.
We think the -- -- will choose to come over we believe that you know an.
There -- you know respect and they're of to keep them every day it's little choice to stay here and.
William really quickly Paul will you have to lay off -- -- -- I'm thinking more back office but broadly speaking.
The other some overlap to some overlap in our fixed income business let people know and and and the support structure.
But our approach is really different as we talked our analysts call we're gonna take this this is about long term earnings on about short term.
So going to be very deliberate make sure we keep up the support.
For the clients in the financial advisors through the transition -- ready we'll switch over so.
They'll be some job losses and overlaps -- -- -- as -- as some -- bank.
-- great to talk to thank my -- rally of Raymond James you're welcome back any -- we're likely to be more often not just when you make a big great -- -- well.
Filter by section