[Kevin Henry-Seacoast]

Its interesting that evrey industry has mergers and takeovers between the top dozen leaders yet almost never in MCA i am wondering if its because almost evrey leader in our space are insiders that built ground up and are not familiar with the takeover game ? or is there simply no opportunity? because how i see it there is some areas of consolidation and perhaps some vulture maneuvers on the table currently that would position someone to get light years ahead of competitors and perhaps corner some of the market.

Years ago the fin-tech brokerage firms did well, but there were limited exit strategies. Some of the discount or technology focused firms merged and a handful were acquired by traditional firms because they wanted the technology or the book. The difference with this industry is that many of these fin-tech companies are at risk. Only a handful of the brokerage fin-tech firms were at risk. Example: Schwab acquired Mayer and Schweitzer to gain entry into the risk equity trading business. Chuck did very well over the years with the division, but when regulation and margins changed he quickly sold the division to UBS. Deutch Bank acquired National Discount brokers and Sherwood securities to do the same and quickly jettisoned the business. Herzog was acquired by Merrill and there were less than 6 Herzog people left within a year.

Financial services is a tricky exit strategy... You must understand risk and also understand that your business assets are your people and customers and they can leave at any moment.