Capital Analysts Inc., an affiliate of Western & Southern Financial Group, is being sold to Lincoln Investment Planning Inc., according to announcements from the companies.
The sale of the broker-dealer to Lincoln Investment is expected to be completed by June.
Capital Analysts is a full-service independent broker dealer and registered investment advisor, providing a diversified platform for independent wealth management advisory firms. Several years ago, it switched to a flat-fee model from a fee, commission and ticket charge model.
Lincoln Investment, based in suburban Philadelphia, manages or serves as custodian for $11.1 billion in assets. The terms of the sale were not disclosed. With the acquisition of Capital Analysts, assets will grow to $19 billion, said N. Mark Marr, CFO of Lincoln Investment Planning.
The acquisition will puts them on target for continued growth through buying additional independent broker-dealers, Marr said. Capital Analysts in Cincinnati has about 280 representatives and nearly $61 million in gross revenue last year.
Lincoln Investment had 700 representatives and $106 million in gross revenue last year.
The cost of compliance and technology makes deals such as this cost effective, creating economies of scale, said Ed Forst, CEO of Lincoln Investment Planning.
Lincoln Investment's niche has been the 403(b) market, plus other mass affluent investors. Capital Analysts adds the high-net-worth market and compliments its geographic locations, said Marr.
“This takes us to a whole new category of size and gives us access to services and technology we did not have before,” said Matt Lynch, CEO of Capital Analysts. “We can invest more in such thiings as recruitiing and between the two companies we have a larger footprint.”
Lynch is remaining at the firm after the acquisition to focus on practice management, coaching and succession.
—Karen DeMasters
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