Sequoia Financial Group has taken another step toward the heavyweight ranks of advisory firms with the acquisition of LJPR Financial Advisors.
The addition of Troy, Mich.,-based LJPR, a $776 million firm, pushes Akron, Ohio-based Sequoia to just shy of $5 billion worth of client assets.
The cash and stock deal, which is expected to close by year-end, expands Sequoia's footprint in neighboring Michigan and represents its third deal since 2016.
Citing an average annual historic organic growth rate of more than 15%, Sequoia president Tom Haught said the advisory firm is not making acquisitions as a primary mode of growth.
But he added that Sequoia is prepared to leverage the opportunity to provide succession plans for owners of advisory firms.
"We want to continue to grow because scale and size is important, but we are also aware of the industry's big succession challenge," he said.
Of the five acquisitions Sequoia has made since 2009, Mr. Haught said two were succession plans for advisers moving out of the business.
The LJPR deal is not counted as a succession plan because Leon LaBrecque, who founded the firm 29 years ago, is joining Sequoia as an equity partner and chief growth officer.
Mr. LaBrecque, 62, said he plans to retire at age 70.
The transition to Sequoia will mean "primarily driving content and analyzing solutions, doing public speaking, writing books, and whatever defines a solution," Mr. LaBrecque said.
"LJPR aligns perfectly with our strategy and culture, and complements our existing business exceptionally well," Mr. Haught said.
Sequoia was founded in 1991. Besides Ohio and Michigan, the firm has offices in Florida. With the addition of LJPR, the company will have 91 employees.