(Bloomberg) -- LPL Financial decided to remain independent after reviewing strategic options, including a sale, according to people with knowledge of the matter.
The nation's largest independent broker-dealer, which was working with Goldman Sachs to reach out to potential suitors, made the decision after soliciting final offers and determining it was better off going it alone, said the sources, who asked not to be identified.
Private equity firms, including TPG Capital, were interested in LPL, according to one of the sources. TPG previously co-owned the company with Hellman & Friedman, and still holds a stake.
LPL shares slumped in Thursday trading, sinking as much as 5.8%, hurt by the news that no acquisition is likely and after TPG sold 5.49 million of its shares in a block trade, a document obtained by Bloomberg shows. TPG was the third-largest LPL stockholder with a 9.6% stake as of Sept. 30, according to data compiled by Bloomberg.
In an e-mail statement, a LPL spokeswoman said the board and management continue to have great confidence in LPL’s ability to thrive as an independent public company.
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The country's largest IBD is said to be exploring strategic alternatives, which may include shopping itself around for buyers.
October 11 -
Industry experts survey the field of potential suitors.
October 12 -
With LPL Financial potentially exploring a sale of itself, we look back at some of the biggest deals over the last few years.
October 11
Representatives for Goldman Sachs and TPG declined to comment on the report.
One factor behind LPL’s decision to stay independent is the prospect of President-elect Trump’s administration overturning the Labor Department’s fiduciary rule, a source said.
The regulations are projected to put immense financial pressure on firms that sell retirement products when it's phased in starting in April.
The latest developments come amid a particularly busy week for LPL. On Monday, LPL announced that CEO Mark Casady would be succeeded by President Dan Arnold.
