LPL Financial LLC, the nation’s largest independent broker-dealer, has agreed to purchase the assets of E.K. Riley Investments LLC, a broker-dealer and registered investment advisor headquartered in Seattle. E.K. Riley Investments provides independent financial advice to individuals, affluent families, and business owners, with approximately 35 financial advisors and $2 billion of client assets under management.
The transaction is structured as an asset purchase and is expected to close in the second half of 2020. The asset purchase agreement provides for both a payment at closing and potential contingent payments. LPL estimates a transaction multiple of approximately 6x post-synergy EBITDA.
“We welcome E.K. Riley Investments’ experienced team of advisors to the LPL family,” said Rich Steinmeier, LPL Financial managing director and divisional president of business development. “They share our commitment to clients and passion for independence. We are committed to their success, offering the benefits of LPL’s scale as well as access to integrated technology, an innovative wealth management platform and resources to help them run efficient and productive businesses. We look forward to a long-lasting partnership.”
LPL Financial provides service to approximately $670 billion in brokerage and advisory assets as of March 31, 2020. The company provides proprietary technology, comprehensive clearing services, practice management programs and training, and independent research to 16,763 financial advisors and 700 financial institutions.