I’ve been thinking ELT is setting everything up for a merger, for awhile now. But lately I’ve started to wonder about a spinoff instead. All this talk about segments… core, new to wealth and high net worth. Think there might be a plan to create the segments in order to spinoff or sell one or two of them?
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@mr now YOU my friend are paying attention. Well done.
@134 This is so true. Everyone at home office is cynical, jaded, and p!ssed off. We haven't even gotten to the 4 days RTO and all the HBAs having to commute in and join in on the "culture". The indian contractors we have now (over 3000+) are breaking things left and right or completely pushing the work back to onshore to fix. It has been a total disaster training these people. Penny brags about a record breaking year while threats of layoffs loom in the background. Zero jobs here have been replaced by AI, but that will be the big lie told when more people are chopped. Don't worry, our new home office in india will make everything better.
@104 Better sell quick! HO is a mess. No one will notice outside for a year or two but confusion and apathy are sky high at HO. Tons falling through cracks (no one knows process or cares) and the balance sheet will have big liabilities when regulators and lawyers start scoring against EJ. A rich target.
Ironically tenured associates (LP holders) kept EJ clean because they saw it as their firm too. They're gone now and no one cares. Karma is coming ELT. Sell fast. Penny needs her pennies.
@zy a company purchased has less say in who/what stays at the new merged company.
“They trimmed the workforce, increased sales by 20% to get it ready for a buy out.” - Season 3 Episode 10 of Mad Men.
There have been promotions with pay increases for a select few, people let go and jobs sent to India or third party contractors. They have trimmed the fat, and what I am getting at, they are setting the company up to sell.
@zy usually the purchased company is the one that is streamlined for "redundant" roles
But who knows, maybe if someone else buys us, it could potentially better than the company we have now 🤷♀️
@v9 Why shouldn’t EDJ sell then?
@v9 I think that is how they will 'sell' it to us. They will dangle the buyout numbers and some other little goodies along with some s-b story that we have to go public or else the company won't survive. They will then try to gaslight everyone and tell us we are still the same ole down home folksy midwestern values company. /s
@q7 if they do go public, you would probably be inline to receive a huge offer for your "shares."
@mr , I'm thinking after reading this page, to cash out my LP since I'm heading out the door soon. I have little faith where this place is heading.
@j3 I've heard from a couple different rumors that we tried to pull the merger card several times with places like CITI, Bank Of America, and even LPL. Nobody wanted us, which is what led to the push to have our own bank. Now, the higher ups need to come up with a reason to once again lie to our faces and pivot the talking points over the next 2 years to justify us going public.
I would bet going public.
What brokerage out there would entertain a merger with EJ? They are too different from other firms and would be a huge culture clash.
Maybe a bank without a serious brokerage arm like Citi.
The other possibility would be a PE buyout.
@e2 how then would you spin off part of the company? HNW is inconsequential right now. you spin off part of it geographically, but where/why? we don't have a bank channel or independent channel, so there's not a division in place that could be spun off.
@dc it's either that or we go public. No other logical reason for the behavior of leadership the last 3 years. A handful of people at the top will cash out and make bank while everyone else is left holding the bag as DC takes over and sells us out to the wall street parasites. Good job penny, you one job to do when you took over and you completely fumbled the ball on the first play. You ignorant little brat.
@d9 why would the field have to be involved? The HNW area is serving customers directly.
@d9, I'm thinking a merger will happen and the name EJ will no longer exists.
@OP what part could be spun off? There's not any separate channels out in the field to divide. A merger, or complete sell off, is certainly a possibility/ probability.