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LPL Financial President & CEO Dan Arnold

LPL Financial says it has wrapped up its purchase of Allen & Co. of Lakeland, Florida, a broker-dealer and RIA with 33 employee advisors and about $3 billion of client assets. The news comes about 11 weeks after it announced the planned deal and several months earlier than it initially expected. 

“We’re honored that this terrific group of advisors joined LPL,” according to LPL President & CEO Dan Arnold. “We also look forward to collaborating as we innovate on our new model that preserves the principles of independence and wraps them in employee services.”

The independent broker-dealer says the transaction’s price should represent about seven times earnings before interest, taxes, depreciation and amortization, once Allen & Co. is fully integrated into its operations.

“It is humbling to have retained our entire advisor team and all of our associates through this acquisition,” said Allen & Co. Chairman Ralph Allen, in a statement.

LPL reported plans to buy Allen & Co. on May 21. The next day, it said was adding an employee model to its offerings and boosting its 2019 technology budget to $150 million from $135 million to accommodate this and other developments.

The independent broker-dealer explained at the time that its strategy and related IT moves should “attract advisors who have more than a 75% mix of advisory business.”

According to LPL, traditional employee advisors work with about $11 trillion in client assets, while advisory-oriented independent models encompass $5 trillion and traditional independent models $3 trillion.

In the second quarter, the IBD’s total assets grew 7% year over year to $706 billion. Its advisor headcount was 16,161 — up 112 from last year but down 28 from the prior quarter.

— Check out LPL to Enter Employee Channel on ThinkAdvisor.

Janet Levaux

Janet Levaux, MA/MBA, is Editor in Chief of Investment Advisor magazine; she has covered the financial markets since 1991 and advisors since 2005. After living in Latin America and Europe as part of her studies at Yale and Johns Hopkins SAIS, Janet worked in Japan and then California, where she earned a business degree, before returning to her hometown of San Antonio, Texas (which turned 300 in 2018).

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