Piper Jaffray Nearing Deal to Buy Sandler O'Neill for $485 Million

Question

Per WSJ: https://www.wsj.com/articles/piper-jaffray-nearin…

What are everyone's thought on this? Obviously Sandler is a player in small/mid size banking and brings an end to the Sandler O'Neill name that saw them survive the September 11th terrorist attacks. Always though this was a good, inspiring read: 
https://fortune.com/2015/09/11/september-11-sandl…

"Sandler’s investment bankers were determined not to abandon a single deal—both as a matter of pride and to send a signal to the Street that the firm was open for business. So it was that on Sept. 12—yes, Sept.

KerryHall · Accepted Answer

..

Anonymous Monkey · Answer

Sandler O' has always punched way above its weight. Very underrated.

Bullet-Tooth Tony · Answer

"TheBuellerBanker"
This is just PJs strategy - roll up boutiques to theoretically crush their share. Hasn't exactly worked out so smoothly in the past... PJ just houses these firms under their umbrella (ie. xyz, a Piper Jaffrey Company) without any regard to the name / brand dilution which arguably makes a huge difference.  Have done considerable work in this space previously so just my two cents. PJ was generally an example of how NOT to roll the space up.

To play devil's advocate:

Can you point to specifics for why you don't think it has worked for PJC?

EbbsAndFlows · Answer

How does one even value a boutique M&A shop?

Before you crucify me, I’m looking at this beyond fees (cash flows), what’s to prevent the BSD at Sandler from cashing out or hanging it up? Even if they have contracts where they’re committed to PJ for a number of years, what’s to prevent them from putting it in cruise control? 
To me it seems like these kind of deals can go bad quickly in that sort of scenario. In my mind you’re buying a name that’s only as good as the bankers behind it.

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Piper Jaffray Nearing Deal to Buy Sandler O'Neill for $485 Million

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Piper Jaffray Nearing Deal to Buy Sandler O'Neill for $485 Million

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