Wells Fargo looking to sell H.D. Vest: Sources

Wells Fargo looking to sell H.D. Vest: Sources
Said to be seeking buyer for brokerage and tax-advice firm; part of revamp of wealth management unit?
MAY 05, 2011
By  Bloomberg
Wells Fargo & Co. is seeking buyers for the H.D. Vest brokerage and tax-advisory unit that it bought for about $128 million a decade ago, according to two people with knowledge of the matter. The business may fetch more than $200 million and attract interest from private-equity investors, said one of the people, who spoke on condition of anonymity because the talks are private. H.D. Vest currently ranks as the eighth largest independent broker-dealer, according to InvestmentNews data, with 4,982 reps as of Sept. 30, 2010. In 2010, the unit generated $241 million in revenue, which ranked as 19th among the largest independent broker-dealers. To see the full profile of H.D. Vest's financials, click here. Wells Fargo Chief Executive Officer John Stumpf, 57, has been revamping the wealth, brokerage and retirement business after calling it “sub-optimized” in December, and is seeking acquisitions in the sector. He shuffled regional managers in the wealth-management unit earlier this year, cutting them from 12 to seven, Vince Scanlon, a bank spokesman, said in a May 6 e-mailed statement. Alan Elias, a spokesman for San Francisco-based Wells Fargo, declined to comment. The unit, founded by Herb D. Vest in 1983 and sold to Wells Fargo in July 2001, is the largest U.S. provider of financial services delivered through tax and accounting professionals, the Irving, Texas-based unit said on its website. It has about 5,200 independent contractors, including certified public accountants, enrolled agents and tax practitioners, and oversees more than $26 billion of client assets, according to the website. Wells Fargo, which struck $25 billion of acquisitions over the past decade, rarely sells business units. Excluding private- equity investments and buildings, its only divestiture exceeding $100 million in the past decade was the $734.5 million sale in 2006 of Island Finance, a San Juan, Puerto Rico-based bank, according to data compiled by Bloomberg. --Bloomberg News--

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.