LPL Financial LLC, a retail investment advisory firm and independent broker-dealer, is on the verge of buying Lucia Securities, which is part of a San Diego-based family of companies working in the wealth advice, asset management, and investment distribution spaces.
The deal allows the US largest independent broker-dealer to boost its advisor headcount by 20 advisors, as well as $1.5 billion of client assets under Lucia’s management. Lucia Capital Group’s broker-dealer arm provides independent financial advice to individuals, affluent families, and business owners.
Structured as an asset purchase, covering certain assets of Lucia Securities and the property on which they are operated, LPL Financial expects to close the deal in the second half of 2020. The purchase agreement provides for both a payment at closing and potential contingent payments. The Company estimates a transaction multiple of ~6x post-synergy EBITDA.
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Faced with the economic fallout from the coronavirus and heightened competition, LPL Financial has been a hiring spree this year, according to public recruiting announcements by the firm in the first quarter. The company provides its guidance to millions of American families seeking wealth management, retirement planning, financial planning and asset management solutions.
Commenting in the news, ich Steinmeier, LPL Financial managing director and divisional president, said: “We are honored and excited to have this terrific group of experienced advisors joining LPL. At LPL, Lucia Securities’ advisors and their clients will benefit from the strength and breadth of our capabilities, technology and services. We look forward to supporting Lucia Securities on the next phase of their growth.”
“I believe our wealth management platform, enhanced with LPL’s culture, technology and capabilities, provides the ideal environment for our financial advisors to exceed clients’ expectations. I look forward to a successful long-term partnership,” added Ray Lucia Jr., CEO, Lucia Securities.