LPL Financial's acquisition of Atria Wealth Solutions Inc.'s network of firms, comprising 2,400 financial advisors across seven broker-dealers, presents a complex integration challenge, according to JPMorgan Chase & Co. analysts.

In February, LPL announced its acquisition of Atria for $805 million, with an additional $230 million contingent on advisor retention. Advisors at Atria manage around $100 billion in assets, and LPL aims to complete the integration by mid-2025.

Analysts note in a recent InvestmentNews article that while LPL has extensive experience with acquisitions, integrating seven separate broker-dealers will be intricate. Preparations for onboarding and integration are underway, but the task is formidable even for LPL's seasoned team.

Backed by private equity investors Lee Equity Partners, Atria, under the leadership of CEO Doug Ketterer, acquired two broker-dealers focused on banks and credit unions; and an additional five serving independent financial advisors over roughly seven years.

Despite LPL's history as an active acquirer in the wealth management industry, retaining advisors from acquired firms has posed challenges. For instance, LPL's acquisition of the National Planning Holdings network in 2017 resulted in retaining approximately 70 percent of advisors' fees and commissions, a disappointment for the firm.

Industry analysts anticipate LPL will retain around 80 percent of Atria's assets, amounting to $80 billion, aligning with retention rates observed in previous transactions. The anticipated earnings contribution from the Atria acquisition is expected to reach approximately $140 million when fully integrated.

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