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Industry Spotlight > Mergers and Acquisitions

LPL Financial to Buy 108-Year-Old Firm

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What You Need to Know

  • Boenning & Scattergood will onboard to LPL’s employee advisor model but keep its brand.

LPL Financial signed a definitive purchase agreement to acquire the Private Client Group business of Boenning & Scattergood, a broker-dealer and RIA based in West Conshohocken, Pennsylvania that manages about $5 billion of advisory and brokerage assets, LPL said Friday.

Boenning & Scattergood is a 108-year-old family-owned business with about 40 financial advisors. It will onboard to LPL’s employee advisor model but keep its brand while benefiting from a new operating model, LPL said.

The transaction represents a significant expansion of LPL’s employee advisor affiliation model that started in 2019 with the acquisition of Allen & Co. in Lakeland, Florida.

LPL didn’t say how much it’s paying for Boenning & Scattergood and didn’t immediately respond to a request for comment.

But LPL says the transaction is structured as an asset purchase, the purchase agreement was signed on Thursday, and the transaction is expected to close in early 2023, subject to regulatory approval and other customary closing conditions.

As part of the transaction structure, LPL will onboard Boenning & Scattergood advisors and certain staff as employees, with Boenning & Scattergood maintaining its operations and brand, LPL said. Boenning & Scattergood client assets will onboard to LPL’s custodial platform. LPL estimated a “transaction multiple of ~5x post-synergy” earnings before interest, taxes, depreciation and amortization.

Explaining why he decided to sign the deal with LPL, Harold Scattergood Jr., chairman and CEO of Boenning & Scattergood, said: “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.

“Importantly, LPL took the time to understand our business, our culture and our goals. LPL’s commitment to investing in our superior wealth management platform will help us to further our capabilities to enrich and grow our support for clients.”

What made Boenning & Scattergood attractive to LPL was that it “has a long history of making a positive difference in the lives of their clients, employees and the communities they serve,” according to Rich Steinmeier, LPL managing director and divisional president, business development.

“As their partner, we can provide an operational model that allows Boenning & Scattergood to focus on client experience and firm growth,” Steinmeier said in a statement. They have the freedom to run their business on their terms, with the ability to stay focused on their client relationships.”

LPL now supports over 20,000 financial advisors, about 500 RIA firms, and about 1,000 institution-based investment programs nationwide. As of March 31, LPL had total advisory and brokerage assets of $1.2 trillion, according to its website.