Those Deals Really Are Negotiable! - Adviser Attrition at Barclays

Stifel's acquisition of Barclays' U.S. wealth management unit closes in early December, but the firm may end up with a lot more empty desks than it originally expected. According to press reports just under half of Barclays' U.S. advisers have left for other firms since the deal was announced in June, Stifel said when announcing earnings this week.

The firm expects that 95 to 105 Barclays advisers overseeing $25 billion in assets will transition to Stifel. When the deal was announced, Stifel said that the Barclays unit had about 180 advisers overseeing $57.9 billion in client assets.

Terms of the deal have not been disclosed – making it difficult to judge whether the firm is paying a good price for the unit, insider observers say. Yet by one measure, the Barclays unit will contribute less to Stifel's revenue.

The St. Louis-based firm said it now expects the unit to add $210 million to $230 million in revenue, compared to $332 million when the acquisition was first announced.

With Stifel Deal Pending, Advisor Attrition Spikes at Barclays | IAG Breaking News:

----------
Mark Astarita represents brokers and advisers in their transitions between every major broker-dealer, and has been doing so for decades. He is the founder of SECLaw.com, his web site is www.securitieslawyer.us and his firm's site is www.sacllc.com

Can Stifel Retain the Barclay Advisors?

According to Financial Planning, Stifel's proposed acquisition of Barclays's wealth management unit offers the chance to serve more lucrative high-night-worth clients. But keeping the advisers who serve those clients may prove tricky.

The Barclays deal, for which terms were not disclosed, brings about 180 advisers managing $56 billion in assets. Many of those advisers are legacy Lehman Brothers brokers, and they currently operate from 11 U.S. offices.

For more information, see Is Stifel's Retention Package Enough to Keep Elite Barclay's Advisors?

---

The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions. We represent investors, financial professionals and investment firms, nationwide. For more information call 212-509-6544 or send an email to mja@sallahlaw.com.

Related articles

• Broker-Dealer Rankings, Growth Report Release
• Barclays boosts profits with Lehman resolution 
• Stifel In Lead To Buy Barclays' U.S. Wealth Unit 
• Reviewing Broker Transition Agreements