In the News

For small B-Ds, becoming part of a branch office of a larger firm is a viable exit strategy

August 25, 2017

By Bruce Kelly, Investment News

Such deals allow them to get out from under the cost of running a broker-dealer, but preserves their brand and culture

LPL Financial’s acquisition this month of the National Planning Holdings Inc. network of four broker-dealers with 3,200 reps and advisers certainly has the independent broker-dealer industry abuzz, but transactions involving smaller broker-dealers are also of keen interest, as well as far more common.

​ At the start of the year, brokerage executives pointed to the potential for large firms buying small firms, which are struggling with compliance and technology costs, and absorbing them as branches called offices of supervisory jurisdiction, or OSJs.

Two recent deals or mergers stand out.

Is LPL’s Purchase of NPH Savvy or Reckless?

August 16, 2017

By Janet Levaux, ThinkAdvisor

Analysts and executives discuss the pros and cons of the IBD’s $325 million purchase

LPL Financial announced the much-anticipated purchase of National Planning Holdings, an affiliate of Jackson National Life, and its four broker-dealers late Tuesday.

Early Wednesday, CEO and President Dan Arnold and CFO Matt Audette spoke with equity analysts about the news and highlighted details of what could be a profitable but also highly complex merger.

Here are some of the issues raised during the discussion, with input from some analysts on the call and insights from outside industry sources, pointing to potential benefits and pitfalls of the transaction.

The Price Tag

At $325 million initially and with a possible contingency payment of up to $123 million,