LPL Financial to Acquire Firm with $3 Billion in Client Assets
LPL Financial Holdings Inc. has agreed to acquire Allen & Company of Florida Inc., a broker-dealer and registered investment adviser with 30 advisors that oversee approximately $3 billion of client assets.
LPL Financial Holdings Inc. has agreed to acquire Allen & Company of Florida Inc., a broker-dealer and registered investment adviser with 30 advisors that oversee approximately $3 billion of client assets. The transaction is expected to close by the end of 2019.
“We are excited that Allen & Company has chosen to join the LPL family,” said Dan Arnold, LPL Financial president and CEO. “We are focused on M&A opportunities that align with us strategically, operationally and financially, and Allen & Company is a great fit on all fronts.”
Under the transaction structure, LPL will onboard Allen & Company advisors and staff as employees and maintain its operations and brand. Client assets will onboard with LPL’s custodial platform.
Although the purchase price was not disclosed, the agreement provides for an initial price and a potential contingent payment based on the portion of Allen & Company’s client assets that are onboarded to LPL’s platform above a specified threshold. The company estimates a transaction multiple of 7x post-synergy EBITDA.
In other recent LPL news, the firm recently added financial advisor Peter Heilbron, who serves $1.1 billion of advisory assets, to its corporate registered investment advisor platform to support his fee-only business.
LPL Financial provides service to approximately $684 billion in brokerage and advisory assets as of the first quarter of 2019. The company provides proprietary technology, comprehensive clearing services, practice management programs and training, and independent research to more than 16,000 financial advisors and 700 financial institutions.
