In the News

Securities America Sale: Final Price Could Be $220 Million; Big Retention Bonuses

August, 2011
by Janet Lavaux and featured in AdvisorBiz:

In addition to the $150 million in cash Ladenburg Thalmann said Wednesday that it planned to pay Ameriprise Financial for Securities America, the Miami-based broker-dealer says it will pay up to $70 million in 2012 and 2013 in so-called earn-outs, the firm explained in an SEC report filed Thursday. Plus, Ameriprise (AMP) continues to be responsible for any costs related to the sale of certain private-placements.

News is also emerging about the size of retention bonuses being offered to Securities America’s 1,700 advisors, which experts say, amounts to about 15% of an FA’s yearly fees and commissions.

The Good, the Bad and the Ugly

August, 2011
by Diana Britton and featured in RegisteredRep:

The independent broker/dealer landscape is lately littered with tales of woe — scores of smaller firms have gone up in a puff of smoke over the past two years due to everything from troubled private placements to insufficient net capital. In February of this year, independent broker/dealer QA3 Financial announced it would close its doors following an arbitration related to Regulation D products. Just over a month later, at the end of April, Ameriprise Financial said it would be selling Securities America, its IBD arm, while the firm was in the middle of finalizing a settlement agreement with investors related to private placements. And at the beginning of June, it surfaced that Harrison Douglas, a small IBD of about 28 advisors,

Securities America Sale: ‘Amazingly Low Price,’ Expert Says

August, 2011
by Janet Levaux and featured in AdvisorOne:

The news Wednesday that Ladenburg Thalmann is buying Securities America for what some call a bargain price, resolves some issues for the independent broker-dealer’s 1,700 advisors, but raises a good number of questions, as well, experts say. Most important, they note, is the need for aggressive retention packages and other steps to stem the tide departing advisors.

For the deal, Ladenburg will pay $150 million in cash up front to Securities America parent company Ameriprise Financial and possibly more if certain performance targets are met by Securities America in 2012 and 2013; the deal is being financed by an affiliate of Dr. Phillip Frost, Ladenburg’s principal shareholder and chairman. Securities America should add about $450 million annual sales to Ladenburg’s results and up to $50 billion in assets,