[pullquote]The Company is looking for a buyer who will maintain the same culture that we have had.[/pullquote]
Regions Financial Corp announced their intent to sell off their Morgan Keegan brokerage unit last June, and ever since rumors and speculations over who will acquire this close-knit brokerage whose roots date back to 1969 have been the talk on the street and inside Morgan Keegan.
Blackstone Group and Stifel Financial Corp have been cited as possible suitors for Morgan Keegan. Inside rumors seem to be pointing to the majority of more than 1.200 brokers in the private client group are hoping for a private equity buyer which could give them an equity share in the firm and allow them to stay more client-centered than a big bank might allow.
So, if that does not happen, will there be a mass exodus?
Industry recruiters seem to agree that these financial advisors do not want to be a part of a large firm and if client dissatisfaction over the acquisition occurs also, then they would be looking to leave. And it very likely could be a mass exodus.
So, where would they go? They have always been extremely loyal; they like a small regional firm culture and they want to retain that identity. The independent space is a logical next-step it would seem.
Morgan Keegan spokeswoman, Kathy Ridley, has said “The Company is looking for a buyer who will maintain the same culture that we have had.” As Financial Recruiters, we will be watching with interest.