August 17, 2011
The SNL Financial article, "Dislocated Environment Creates Strategic Inflection Point for Brokers," reported on the brokerage industry's M&A activity and strategies during economic difficulties.
The article stated: "Unsettled environments provide opportunities for companies to evaluate how they are going to be successful going forward. Paul McCurdy, chairman of Kelley Drye & Warren LLP's broker/dealer practice, explained to SNL, some firms may decide they need to expand and add new operations, while others decide to return to their roots and cut themselves down to size. 'Anybody whose view on this [environment] is that it is business as usual is crazy,' he added. 'We're in a place we've never been before.'"
"Prices may have to be adjusted and valuation could prove to be a bit of a stumbling block for any potential deal, but McCurdy does not believe that the market should have a great impact on transactions that are otherwise fundamentally sound. 'I don't think volatility in opening and closing prices should shatter confidence in a good business plan,' he said."