Anyone know how long it will take from the time the Wells Fargo Asset Management unit to take bids for purchase and the time the deal will close and employees will be laid off? Are we talking 2-3 months of time left at Wells Fargo before we are cut loose? How long does the M&A process take? Thanks
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I've been saying selloff and exit for 2 years on this site. It will happen. The CEO musical chairs, virus (synonymous with CEOs?), etc. have just thrown wrenches in the master plan.
Sell off and exit has always been the plan. It's better for everyone except low level employees.
The decision was made when "Cleanup in Aiske 6" became "Cleanup in EVERY aisle of the grocery store". Execs said "Let's hurry and make $$$ off the cluster%@#&, and then put on our golden parachutes!"
M&A can take months and months for the due diligence alone. If it sells in a few months then this was already in the works long before then. I suspect it’s been happening behind the scenes for months, maybe a year already if it’s in the media. Chuck tends to have loose lips and seems to enjoy telling people just enough to worry to either k–l them or make them quit - the. Wells Fargo can avoid paying severance. Class act there! P poor mgmt on every level. We learn more about the company from the media. If karma bites him can we all have front row seats?
it will take time, none of that is typically quick. Negotiations have likely already started if it got out in the press, meaning we probably have a couple of strong potential buyers. That firm up will take another 60 days or so. Expect 60-90 for regulatory approval. Then depending on the divesture agreement, would expect the buyer to take a % of the former Wells Fargo employees and cut the rest. That will be largely dependent on who the buyer is, and what their goal is for the business.
It will take a couple months for all the regulatory approvals to be received. If a deal was announced this week, you are looking at an end of Q1 or early Q2 close. And even after it closes, you’ll have many months before the buyer will start trimming people. Generally severance packages are agreed to in the sale negotiation process and stay in place for at least a year after the sale. At least that’s what happened with the 401k business
Makes sense to sell the least profitable parts of the business.
I believe when insurance was sold managers stayed to transition for 90 days or 120. Some longer. It depends on how large the business is and terms of sale.