Acquisitions And Private Investment In IFMI (Tables)

12 Months Ended

Dec. 31, 2013

JVB Holdings [Member]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed



	Total Estimated Fair Value as of Acquisition Date
Assets acquired:
Cash and cash equivalents...............................................................................................................................................................................	$ 91
Receivables from brokers, dealers and clearing agencies (deposits with clearing organizations).....................................................................................	100
Investments-trading.........................................................................................................................................................................................	31,935
Other assets (1) (2).........................................................................................................................................................................................	1,077
Liabilities assumed:
Payables to brokers, dealers and clearing agencies...............................................................................................................................................	(17,655)
Accounts payable and other liabilities.................................................................................................................................................................	(1,221)
Trading securities sold, not yet purchased...........................................................................................................................................................	(4,497)

Fair value of net assets acquired.......................................................................................................................................................................	9,830
Purchase price for net assets acquired...............................................................................................................................................................	$ 16,813

Goodwill (2) (3).............................................................................................................................................................................................	$ 6,983

(1)Other assets are comprised of a purchase accounting adjustment of $166, which represents the estimated value of the broker-dealer license. The intangible asset of $166 related to the broker-dealer license was allocated to the Capital Markets business segment.

(2)During the measurement period, which ended on January 13, 2012, an adjustment of $30 reducing the fair value of the assets acquired was made with a corresponding adjustment to increase goodwill by $30.

(3)Goodwill recognized as of the acquisition date was allocated to the Capital Markets business segment.

Schedule of Purchase Consideration

Equity consideration:
Shares of IFMI issued (1)...............................................................................................................................................................................	313,051
Multiplied by (2).............................................................................................................................................................................................	$ 4.89

Value of stock consideration.............................................................................................................................................................................	$ 1,531	$ 1,531
Cash consideration (3).....................................................................................................................................................................................		14,956
Contingent payments due (4).............................................................................................................................................................................		326

Total purchase price.......................................................................................................................................................................................		$ 16,813

(1)Excluded 559,020 units of the Operating LLC issued to certain JVB Holdings Sellers that remained employees of JVB Holdings. These units vest over a three year period and are treated as compensation for future service and not part of the purchase price. See notes 19 and 20.

(2)Represented the closing price of IFMI shares of Common Stock on January 13, 2011.

(3)When closing the transaction, payment was made based on an estimate of JVB Holdings’ tangible net worth. However, a mechanism existed in the contract whereby the Company would owe additional funds or could recapture funds to the extent JVB Holdings’ tangible net worth differed from the amount estimated. The amount of cash consideration represented actual cash paid at closing of $15,044 less $88 receivable from escrowed proceeds for the tangible net worth adjustment. Also, cash consideration excluded $2,482 which was paid over time to the Management Employees. The amount was contingent upon the individuals remaining employees. It was earned ratably over a three-year period. If the employee terminated employment during the three year period, any unearned portion was refundable to the Company. It was treated as compensation for future services and not part of the purchase price.

(4)Represents contingent payments due to the Sellers based on performance targets. A specific business unit of JVB Holdings was required to earn a minimum amount of revenue within 12 months of the business combination in order for this amount to be due to the owners of JVB Holdings. If that threshold was met, the owners of JVB Holdings would receive an additional payment of $384 which the Company would have treated as contingent consideration. Accordingly, the Company determined the fair value of this arrangement and recorded a liability equal to the fair value as of the date of the business combination. The Company had determined that the fair value of this obligation at the business combination date was $326. The Company carried this liability at fair value and any future adjustments in fair value were recognized in earnings. The Company recognized income of $326 for the year ended December 31, 2011, which was included in principal transactions and other income in the Company’s consolidated income statement.

PrinceRidge [Member]

Business Acquisition [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed



	Total Estimated Fair Value as of Acquisition Date (final)
	(dollars in thousands)
Assets acquired:
Cash and cash equivalents...............................................................................................................................................................................	$ 2,149
Receivables from brokers, dealers and clearing agencies……………………………………………...	9,382
Other receivables...........................................................................................................................................................................................	1,815
Investments-trading.........................................................................................................................................................................................	42,407
Receivables under resale agreements...................................................................................................................................................................	158,688
Other assets...................................................................................................................................................................................................	4,730
Liabilities assumed:
Accrued compensation.....................................................................................................................................................................................	(1,725)
Accounts payable and other liabilities.................................................................................................................................................................	(2,877)
Trading securities sold, not yet purchased...........................................................................................................................................................	(38,605)
Securities sold under agreement to repurchase.....................................................................................................................................................	(158,620)

Fair value of existing PrinceRidge net assets.......................................................................................................................................................	17,344
Purchase price (1) (3).....................................................................................................................................................................................	$ 18,409

Excess of purchase price over net fair value.......................................................................................................................................................	1,065
Less amount allocated to intangible asset (2).......................................................................................................................................................	(166)

Goodwill (3)...................................................................................................................................................................................................	$ 899

(1)The purchase price represents the fair value of PrinceRidge retained by the members of PrinceRidge other than the Operating LLC (dollars in thousands):



	Total Estimated Fair Value as of Acquisition Date (final)
Summary Purchase Accounting
Net Fair Value Summary
Net Fair Value of IFMI Contribution...................................................................................................................................................................	$ 45,000
Net Fair Value of PrinceRidge immediately prior to IFMI Contribution.....................................................................................................................	17,344

Net Fair Value of PrinceRidge After IFMI Contribution.........................................................................................................................................	62,344

Effective Ownership Percentage (as negotiated)
IFMI...............................................................................................................................................................................................................	70.5%
Non-Controlling Interest...................................................................................................................................................................................	29.5%

Total...............................................................................................................................................................................................................	100.0%

Allocable Net Fair Value of PrinceRidge After IFMI Contribution
IFMI...............................................................................................................................................................................................................	43,935
Non-Controlling Interest (purchase price)...........................................................................................................................................................	18,409

Total...............................................................................................................................................................................................................	$ 62,344

See note 18 for a description of the redeemable non-controlling interest. The excess of the purchase price over the net fair value of PrinceRidge immediately prior to the IFMI contribution equals $1,065 calculated as the purchase price of $18,409 minus the fair value of PrinceRidge prior to IFMI’s contribution of $17,344. The excess of $1,065 can also be calculated as IFMI’s contribution of $45,000 minus IFMI’s allocable fair value of PrinceRidge subsequent to IFMI’s contribution of $43,935.

(2)The intangible asset of $166 represented the estimated value of the broker-dealer license, which was allocated to the Capital Markets business segment.

(3)Goodwill recognized as of the acquisition date was allocated to the Capital Markets business segment. See note 12.

Schedule of Purchase Consideration


	Total Estimated Fair Value as of Acquisition Date (final)
Summary Purchase Accounting
Net Fair Value Summary
Net Fair Value of IFMI Contribution...................................................................................................................................................................	$ 45,000
Net Fair Value of PrinceRidge immediately prior to IFMI Contribution.....................................................................................................................	17,344

Net Fair Value of PrinceRidge After IFMI Contribution.........................................................................................................................................	62,344

Effective Ownership Percentage (as negotiated)
IFMI...............................................................................................................................................................................................................	70.5%
Non-Controlling Interest...................................................................................................................................................................................	29.5%

Total...............................................................................................................................................................................................................	100.0%

Allocable Net Fair Value of PrinceRidge After IFMI Contribution
IFMI...............................................................................................................................................................................................................	43,935
Non-Controlling Interest (purchase price)...........................................................................................................................................................	18,409

Total...............................................................................................................................................................................................................	$ 62,344

(2)The intangible asset of $166 represented the estimated value of the broker-dealer license, which was allocated to the Capital Markets business segment.

(3)Goodwill recognized as of the acquisition date was allocated to the Capital Markets business segment. See note 12.

Star Asia Manager [Member]

Business Acquisition [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed



	Total Estimated Fair Value as of Acquisition Date
Assets acquired:
Cash and cash equivalents	$	1,104
Due from related parties		253
Other assets		150
Liabilities assumed:
Accounts payable and other liabilities		(55)
Fair value of net assets acquired		1,452
Purchase price (1)		1,855
Intangible Asset (2)	$	403

As provisional amounts, the amounts in the table above are subject to changes during the measurement period. See notes 15 and 28.

(1)The purchase price represents the cash paid to Mercury of $425; the note payable to Mercury of $725; and the Company’s equity method investment immediately prior to the Star Asia Manager Repurchase Transaction. For purposes of the provisional amounts, the Company has assumed the carrying value of the Company’s equity method investment immediately prior to the Star Asia Manager Repurchase Transaction approximated fair value. As with all provisional purchase accounting amounts, this is subject to adjustment during the measurement period.

(2)For purposes of the provisional purchase accounting, the Company determined that the excess of the purchase price over the net fair value of tangible assets acquired should entirely be allocated to an intangible asset representing the value of Star Asia Manager’s investment management contract with Star Asia. The Company treated the estimated value as an intangible asset with a finite life. The Company will amortize the intangible asset using the straight-line method over the estimated economic life of the asset of 1.3 years. The intangible asset was allocated to the Asset Management business segment. See note 27. As with all provisional purchase accounting amounts, this is subject to adjustment during the measurement period.