RayJay Gives Deutsche’s “Alex Browners” March Deadline
(Updated in fourth paragraph to note expected cost of $420 million.)
Raymond James Financial has given Deutsche Bank brokers until next month to decide whether they will accept a position with the company, according to several recruiters.
Most of the approximately 140 advisors who have been orphaned because of the German bank’s decision to close its U.S. brokerage operation have been offered a chance to work as an autonomous unit under the Alex. Brown name within Raymond James’ retail branch network. Deutsche Bank got into the U.S. brokerage and investment banking business by buying BT Alex. Brown in 1999.
While Raymond James does not expect its acquisition of the franchise to close until September, it has given a fairly tight commitment deadline of about 90 days after the deal was unveiled in early December, the recruiters said.
Raymond James said in an SEC filing on Monday that it expects to spend around $420 million on the deal although the final total depends upon how many current Deutsche advisors join and remain as long as March 2017.
“A lot of them have already said ‘OK,’” said Rick Peterson a headhunter in Spring, Texas. “There are going to be some who continue to do due diligence – and there are other offers coming in – so they might lose a few to a stronger deal out there. But, by and large, it’s a home run for Raymond James.”
Peterson and other recruiters also said that the deadline may be somewhat arbitrary. Raymond James is unlikely to reject a strong producer even if he or she misses it.
“Let’s face it, the bigger you are, the more flexibility there’s going to be in the timeframe,” Peterson said. “They may not advertise that, but they probably will bend it a little bit.”
A spokeswoman for Raymond James did not respond to a call seeking comment.