Business Units or Product Lines

Piper Sandler Companies operates through major business units: Corporate Advisory Services, Institutional Brokerage, Public Finance Services, and Asset Management. Corporate Advisory Services offers financial advisory services such as mergers and acquisitions advisory. Institutional Brokerage provides sales, trading, and research for a variety of financial products. Public Finance Services assists municipalities and non-profits in issuing debt securities. Asset Management includes investment strategies and products for institutions and individuals.

Business Models for Each Product Line

Corporate Advisory Services generates revenue through advisory fees related to M&A and restructuring deals, with expenses primarily tied to personnel costs. Institutional Brokerage earns revenue from transaction fees and commissions on trades, with expenses for personnel and trading technology. Public Finance Services revenue derives from fees for underwriting and advisory, with costs associated with personnel. Asset Management earns fees based on assets under management, with major expenses including distribution and administrative costs.

Future Opportunities for Growth

Growth opportunities include expanding into new advisory sectors, enhancing capabilities in technology-driven trading and analytics, increasing asset management offerings, and expanding geographically into emerging markets.

Potential Major Risks

Major risks include economic downturns affecting M&A activity, regulatory changes impacting financial services, interest rate fluctuations affecting underwriting and trading operations, and competitive pressures from larger financial institutions.