While submitting, I came across a Literary Agency that had a E-book publishing wing. Assuming that I submitted to them, and that they accepted my submission, wouldn't it be weird for them to shop my book around to their competitors?
Some agents also provide help for their authors who want to self-publish, which isn't usually an issue. The books are either backlist titles or ones they couldn't place with a publisher. So if you mean that, it's not really an issue. But for individual cases, I'd suggest looking at the background and bewares forum, to see how it's running.
I'm aware of at least one very highly respected agency that has an ebook publishing division for the reasons Poleth described. So in of itself, it's not a red flag.
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