March 31, 2025
Louis Diamond Quoted
by Brooke Southall
In a sense, Commonwealth is in a league of its own, according to Louis Diamond, president, Diamond Consultants.
“Commonwealth was the prized property in the independent world. No one ever thought they would outright sell, so it’s a big shocker,” he says.
Still, LPL is paying a premium for its prize, much of it outside the deal terms themselves. LPL will absolutely need to pay many Commonwealth (CW) 2,900 advisors to stick around and give LPL a chance.
“There is no question LPL plans a very generous retention package for CW advisors,” says Waxelbaum. “It will be underwritten using comparable values to their recruiting underwriting.
“It is baked in the [valuation] cake. The relatively middle-ground acquisition cost for CW is the best clue. LPL has built a lot of expense in the anticipated retention programs.”
