Ladenburg Thalmann Financial Services Inc. is exploring a sale, but the company is not releasing any details to the 4,400 financial advisers in its network.
Bloomberg News reported on Tuesday that Ladenburg is working with an adviser to weigh potential offers, and an industry source in a position to know who asked not to be identified confirmed that the Bloomberg report was accurate. Shares closed at $2.25 Tuesday, up 24 cents, or 12%, on the news.
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Broker-dealer mergers and acquisitions
have been hot over the past year, as private equity buyers have been moving aggressively into the broader financial advice industry. Earlier this year, Reverence Capital Partners agreed to acquire 75% of Advisor Group from Lightyear Capital and other investors at a reported price tag of $2.3 billion.
At this stage, it's not clear who could emerge as a potential buyer.
In a note to financial advisers on Wednesday, Richard Lampen, chairman and CEO of Ladenburg, said the company, as a matter of policy, would not comment on rumors or speculation.
"Ladenburg has shown strong performance on a standalone basis," Mr. Lampen wrote. "Since
our acquisition of Securities America in 2011, we have experienced dramatic growth in client assets, impressive operating financial performance, growth of our nationwide network of independent financial advisors and robust results from our capital markets and investment banking business. By any measure, Ladenburg today ranks among the leaders in the independent advisory and brokerage industry."
"Rest assured we remain committed to our financial advisers and their clients, as well as to our open architecture platform and our multiple clearing and custody partners," he added.
A spokesperson for Ladenburg Thalmann could not be reached for comment.
Ladenburg Thalmann first
started building its network of independent broker-dealers in 2007 when it bought Investacorp Inc. Since then,
it has bought Triad Advisors Inc., Securities America, Securities Service Network Inc. and KMS Financial Services Inc. Those firms had close to 4,400 advisers at the end of last year and reported $1.38 billion in total revenue at the end of 2018, according to
InvestmentNews data.
The company reported client assets of $178 billion at the end of June.
