JLL to acquire HFF
Thoughts?
[{"id": "eivlkv7", "text": "The industry has been consolidating for some time, and it\u2019ll continue. This is a pretty significant one. CB, Cushman and JLL will continue shopping for acquisitions.\n\nMy only thought on JLL buying is timing...if we\u2019re at a peak they might have over paid, especially for a Capital Markets brokerage.", "replies": [{"id": "eivv1ah", "text": "Yeah it seems like these acquisitions usually happen around peak market when the selling firm is at it's most valuable. I mean who would want to sell their firm during a recession unless they were desperate? ", "replies": [], "depth": 2}, {"id": "eiw23ta", "text": "HFF also does loan sales, loan workouts and such which is another revenue stream that can increase in a downturn, so there's some resiliency there. The bigger concern I'd have is whether this creates a lot of conflict with JLL's existing sales and financing brokers, and whether people from both sides end up leaving.", "replies": [{"id": "ej0gjyl", "text": "Yeah a lot of competing teams are now under the same umbrella. Looks great to the CEOs, but if I was on a top producing team, I'd have some questions.", "replies": [], "depth": 3}], "depth": 2}, {"id": "eiw41zk", "text": "While they might have overpaid, I think everyone at JLL and HFF is a winner here as this will pay off pretty major in the long run. You could easily make the case now that JLL will have the number 1 Capital Markets platform", "replies": [], "depth": 2}, {"id": "eixuuie", "text": "JLL might think their own stock is over valued and used some of that to purchase HFF", "replies": [], "depth": 2}], "depth": 1}, {"id": "eivmn0h", "text": "That\u2019s a big deal. ", "replies": [], "depth": 1}, {"id": "eivwz3a", "text": "Surprised they didn\u2019t pick off Eastdil. They\u2019re on the market and would give them access to top tier clients. In my experience we see the same stuff from JLL and HFF so this doesn\u2019t seem accretive. ", "replies": [{"id": "eiw3v9c", "text": "Well Eastdil is a subsidiary of Wells Fargo and I don\u2019t see WF letting go of that cash cow they currently have. It\u2019s also good synergy for them\n\nI\u2019d say HFF and Eastdil are the two primary tier 1 CM firms out there. Pretty big move for the industry imo", "replies": [{"id": "eiw6v25", "text": "I think Eastdil is looking at a management buy out. Not much wells can do to stop that other than bargain and collect their check. ", "replies": [], "depth": 3}, {"id": "eiwhuoo", "text": "Eastdil is on the market. Wells is selling. ", "replies": [], "depth": 3}, {"id": "eiwmi0w", "text": "Eastdil almost got sold last year", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "eiw0ej0", "text": "What is HFF?", "replies": [{"id": "eiw1b7w", "text": "What is google?", "replies": [{"id": "eiw7z9b", "text": "Idk why don\u2019t you bing it?", "replies": [], "depth": 3}], "depth": 2}, {"id": "ej0gohk", "text": "The artist formerly known as Holliday Fenoglio Fowler", "replies": [], "depth": 2}], "depth": 1}, {"id": "eiwh863", "text": "Did anyone see the valuation?", "replies": [], "depth": 1}]