Home Alts News LPL Financial to Buy $5 Billion Firm

LPL Financial to Buy $5 Billion Firm

LPL Financial LLC (Nasdaq:LPLA), the nation's largest independent broker-dealer, has agreed to purchase the private client group business of Boenning & Scattergoo

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LPL Financial LLC (Nasdaq: LPLA), the nation’s largest independent broker-dealer, has agreed to purchase the private client group business of Boenning & Scattergood, a broker-dealer and registered investment adviser headquartered in West Conshohocken, Pennsylvania.

Boenning & Scattergood is comprised of approximately 40 financial advisors who serve approximately $5 billion of advisory and brokerage assets. The 108-year-old family-owned business will onboard to LPL’s employee advisor model and retain its brand.

“Our family business has a 108-year history of helping our clients build and secure their financial legacies, and LPL is the right partner for us to carry that legacy and our business forward…,” said Harold Scattergood Jr., chairman and chief executive officer of Boenning & Scattergood.

The transaction is structured as an asset purchase, and is anticipated to close in early 2023.

Under the transaction structure, LPL will onboard Boenning & Scattergood advisors and certain staff as employees, and maintain Boenning & Scattergood operations and brand. Boenning & Scattergood client assets will onboard to LPL’s custodial platform. The company estimates a transaction multiple of ~5x post-synergy EBITDA.

LPL Financial supports more than 20,000 financial advisors, approximately 1,000 institution-based investment programs and approximately 500 RIA firms nationwide. LPL’s advisory and brokerage assets total approximately $1.16 trillion.

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