Author: rafferty

Consolidation 2014: Ladenburg to Buy KMS Financial for $24 Million

18:02 11 August in In the News by rafferty

August 11, 2014 By Diana Britton, Wealth Management.com   Ladenburg Thalmann (NYSE MKT: LTS) said it would acquire KMS Financial Services, a Seattle-based independent broker/dealer with about 325 advisors and $14 billion in assets, for $24 million in cash and stock. After the purchase, Ladenburg will have 3,500 advisors with $110 billion in client assets, and $1 billion in revenue across the firm. As of 1 p.m. eastern time, Ladenburg’s stock was up 5.8 percent. Ladenburg has agreed to pay $11 million in cash, $8 million in four-year notes and about 1.4 million shares of company stock. “Any time there’s some kind of a change, sometimes there’s the trepidation over creation of a lot of disequilibrium, and really we see this quite the opposite—as serving and enhancing the cause of our own continuity out into...

The Ten to Watch 2015: Errin Ford

17:48 11 August in In the News by rafferty

August 8, 2014 By Diana Britton, Wealth Management.com   The Successor Name: Erinn Ford Age: 44 Position: President, Cetera Advisors Location: Seattle; Denver Education: B.A., University of Washington; Series 7, 24, 65, 63 In early 2012, independent broker/dealer Pacific West Securities was hit with a $2.1 million arbitration award over sales of tenant-in-common (TIC) real estate investments—a situation where more than one entity owns a piece of property. The firm, already struggling with thinning profits, decided it was time to close its doors and move its reps (240 at the time) to Cetera Advisors. Erinn Ford, then Pacific West’s chief operating officer and head of marketing, handled the situation gracefully, by all accounts. Ford was recently named president of Cetera Advisors. Earlier this year, the entire Cetera network was purchased by RCS Capital Corp., run by Nicholas Schorsch, one of REP.’s...

RCAP’s Profit Jumps 12% as B/Ds Are Integrated

19:19 08 August in In the News by rafferty

August 7, 2014 By Diana Britton, Wealth Management.com   On the heels of the firm’s latest acquisition of independent broker/dealer VSR Financial, RCS Capital Corp. (RCAP) reported adjusted net income of $42.6 million, or 49 cents a share, for the second quarter, up 12 percent from the same period a year ago. Revenues were up 22 percent to $825.7 million. During a second quarter earnings call Thursday afternoon, RCAP executives said the firm had completed all five previously announced acquisitions of broker/dealers, including First Allied, Cetera, Investors Capital, Summit Financial Services and J.P. Turner. Executives are now focused on integration, and so far the firm has retained 97 percent of its advisors (based on gross dealer concessions), said Bill Kahane, CEO. Not including VSR, RCAP currently has 9,200 advisors and $214 billion in assets under administration,...