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LPL Financial Agrees to Buy Assets of E.K. Riley Investments
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LPL Financial Holdings Inc.’s (LPLA - Free Report) subsidiary, LPL Financial LLC, has agreed to acquire the assets of E.K. Riley Investments, LLC. The asset-purchase agreement is expected to close in the second half of this year.
Headquartered in Seattle, E.K. Riley Investments is a broker-dealer and registered investment advisor (“RIA”). It provides independent financial advice to individuals, affluent families and business owners.
LPL Financial expects a transaction multiple of 6 times post-synergy EBITDA. Per the terms of the deal, payment will be made at closing along with potential contingent payments.
Rich Steinmeier, managing director and divisional president, Business Development at LPL Financial, stated, “We welcome E.K. Riley Investments’ experienced team of advisors to the LPL family. 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.”
E.K. Riley Investments’ president, Brian Bertsch, said, “We chose to partner with LPL as a result of the overall cultural similarities between our two organizations. Over the last few months we have been consistently impressed with their people-centric culture.”
Our Take
LPL Financial’s inorganic growth efforts are expected to keep supporting the top line. In April 2020, the company announced a deal to acquire broker-dealer and RIA firm, Lucia Securities. In 2019, LPL Financial acquired Allen & Company of Florida, while in 2018, it acquired all of the outstanding shares of AdvisoryWorld. The deals along with the other completed deals in the past poise LPL Financial well for growth.
Shares of the company have lost 19.3% over the past six months compared with a 15.6% decline recorded by the industry.
Currently, LPL Financial carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the finance space are mentioned below.
Tradeweb Markets Inc. (TW - Free Report) has witnessed an upward earnings estimate revision of 6.6% for 2020 over the past 60 days. This Zacks Rank #1 (Strong Buy) stock has gained 32.1% so far this year.
GAIN Capital Holdings, Inc.’s current-year earnings estimates increased significantly in 60 days’ time. Further, the company’s shares have appreciated 58.2% year to date. At present, it sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Mackinac Financial Corporation has witnessed an upward earnings estimate revision of 47.1% for the ongoing year in the past 60 days. This Zacks #2 Ranked (Buy) stock has depreciated 38% so far this year.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
LPL Financial Agrees to Buy Assets of E.K. Riley Investments
LPL Financial Holdings Inc.’s (LPLA - Free Report) subsidiary, LPL Financial LLC, has agreed to acquire the assets of E.K. Riley Investments, LLC. The asset-purchase agreement is expected to close in the second half of this year.
Headquartered in Seattle, E.K. Riley Investments is a broker-dealer and registered investment advisor (“RIA”). It provides independent financial advice to individuals, affluent families and business owners.
LPL Financial expects a transaction multiple of 6 times post-synergy EBITDA. Per the terms of the deal, payment will be made at closing along with potential contingent payments.
Rich Steinmeier, managing director and divisional president, Business Development at LPL Financial, stated, “We welcome E.K. Riley Investments’ experienced team of advisors to the LPL family. 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.”
E.K. Riley Investments’ president, Brian Bertsch, said, “We chose to partner with LPL as a result of the overall cultural similarities between our two organizations. Over the last few months we have been consistently impressed with their people-centric culture.”
Our Take
LPL Financial’s inorganic growth efforts are expected to keep supporting the top line. In April 2020, the company announced a deal to acquire broker-dealer and RIA firm, Lucia Securities. In 2019, LPL Financial acquired Allen & Company of Florida, while in 2018, it acquired all of the outstanding shares of AdvisoryWorld. The deals along with the other completed deals in the past poise LPL Financial well for growth.
Shares of the company have lost 19.3% over the past six months compared with a 15.6% decline recorded by the industry.
Currently, LPL Financial carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the finance space are mentioned below.
Tradeweb Markets Inc. (TW - Free Report) has witnessed an upward earnings estimate revision of 6.6% for 2020 over the past 60 days. This Zacks Rank #1 (Strong Buy) stock has gained 32.1% so far this year.
GAIN Capital Holdings, Inc.’s current-year earnings estimates increased significantly in 60 days’ time. Further, the company’s shares have appreciated 58.2% year to date. At present, it sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Mackinac Financial Corporation has witnessed an upward earnings estimate revision of 47.1% for the ongoing year in the past 60 days. This Zacks #2 Ranked (Buy) stock has depreciated 38% so far this year.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>