Another Brokerage Firm Winds Down For Lack Of Strategic Incentive To Go On

Friday, December 16, 2011 11:43
edit
Another Brokerage Firm Winds Down For Lack Of Strategic Incentive To Go On

Tags: business planning

An ominous trend: broker-dealers dissolving rather than go through the trouble of finding a buyer to take over the business. 

This Website Is For Financial Professionals Only


 

Harold C. Brown & Co. was small -- barely $2.4 million in reported AUM -- but its 13 advisors were content to keep the firm alive until recently.

 

The firm's Buffalo lease was coming up in May and it seems to have been too much trouble to find a new space, so they split up.

 

Some are going to Raymond James, United Capital, and Wells Fargo.

 

They're taking their clients with them, so this is not so much a case of toxic assets poisoning the AUM -- the firm relied on conventional stocks and bonds anyway.

 

But if the firm itself had no intrinsic value beyond its AUM, it's still an object lesson. 

 

Is your business worth more than your clientele? When you retire, the more proprietary processes, techniques, and even products you have created, the more it will be worth to a prospective buyer.

 

Comments (0)

Write comment

You must be logged in to post a comment. Please register if you do not have an account yet.

busy