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.