Raymond James Not Eager For M&A Either - Who Will Buy Securities America?

Tuesday, May 03, 2011 22:10
Raymond James Not Eager For M&A Either - Who Will Buy Securities America?

Tags: independent broker-dealers | Raymond James

Scratch a potential buyer off the list of independent brokerage firms that might emerge to pick up Securities America or another of the companies currently on the block.

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Raymond James Financial Services, the independent-broker-oriented arm of Raymond James, is less interested in buying another network than growing organically, COO Chet Helk recently told reporters.


Once again, the whiff of "distress" is a turnoff for the firm. Raymond James would rather court high-quality producers individually without betting real capital on "expensive and risky" acquisitions, Helk says.


This is a stunning story because it demonstrates how much value there is at the strong end of the advisory business -- the individuals RJFS is pursuing -- and how commoditized weaker books have become.


If a national player like Raymond James is unlikely to want to bolt a big network onto its own operation through M&A, the prospects for weaker producers to sell their own books at a fair price just got slimmer.


And for firms like Securities America, I guess we can scratch another rumored potential buyer off the list. 



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