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Investment Banking and
Strategic Business Development
Wells Fargo Purchase of H.D. Vest
Acquisition Summary
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Target Information |
| Target: |
H.D. Vest, Inc.
(HDVS) |
| City: |
Irving |
State: TX |
| Type of Company: |
Network of
Independent Tax Professionals |
| Financial Data As Of: |
12/31/00 |
Sales (LTM):
$196.7 million |
Net Income (LTM): $1.7
million Book Value: $12.9 million |
| Target’s Business: |
Established in
1986, H.D. Vest specializes in providing extensive training and support
services to its nationwide network of tax professionals who provide
asset management and other financial services. Today, H.D. Vest is the
leader in the growing market for comprehensive financial planning
services, with more than 6,000 Representatives managing $16 billion in
assets for 1.8 million individuals, families and small businesses in all
50 states. H.D. Vest provides technology development and information
services, technical and sales support services, educational services,
representative recruiting and insurance agency management services. H.D.
Vest Investment Securities, Inc. provides investment services, trading
and customer service, representative licensing, compliance and
supervision services. Herb Vest, CEO, owns approximately 65% of the
Company. |
|
Acquirer Information |
| Acquirer Name: |
Wells Fargo &
Company (WFC) |
| City: |
San Francisco |
State: CA |
| Type of Company: |
Commercial Bank |
| Financial Data As Of: |
12/31/00 |
Assets: $272.4
billion |
Net Income (LTM): $4.0
billion |
| Acquirer’s Business: |
WFC is a $272
billion diversified financial services company that, through its
subsidiaries, provides retail, commercial and corporate banking services
through more than 4,500 stores located in twenty-one states primarily
located in the western U.S. WFC acquired two broker dealers in 2000, SCI
Financial and Ragen MacKenzie, to expand its private client services
business. |
|
Transaction Information |
| Status: |
Pending |
| Announcement
Date: |
03/23/01 |
Accounting:
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| Completion Date: |
Pending |
Consideration:
Cash |
| Deal Value: |
$127.5 million |
| Price/Earnings: |
82.1x |
| 1 Day Premium: |
200% |
| Price/Book
Value: |
9.9x |
| Comments: |
Wells Fargo will
pay $21.03 in cash for each share of H.D. Vest, a 200% premium to the
last trade. HDVS will remain a separate business unit within Wells
Fargo, offering a broad array of Wells Fargo products including trust
services, mortgages and insurance. The acquisition provides WFC with a
platform to target the 150,000 tax preparers in the U.S. who have strong
customer relationships and timely access to consumer and small business
financial information. |
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