Ladenburg Thalmann & Co. Inc

  • Overview
THE SCOOP

From both sides of the pond

Ladenburg Thalmann first entered the merchant banking scene in 1876 when U.S. investment banker Ernst Thalmann and German banker Adolph Ladenburg joined forces.  Three years later, the firm hit the New York Stock Exchange and became known as a trusted banking liaison between the United States and Europe.  (Even the Queen of England relied on the firm, presenting its management with a sterling silver cigar box after the firm served the British Secret Service in World War II, purchasing Deutschmarks for the U.K. government.)  Connections with royalty aside, the firm has continually changed and developed over the course of more than a century.  Today, the firm is an investment banking and brokerage company that caters to investments for clients in corporate and institutional sectors as well as individual investors.  It is divided into four departments: corporate and institutional, which provides clients research trading and investment banking services; independent brokerage and advisory services, which offers innovative solutions, investment strategies, guidance and high level of service in aiding advisors; individual investors, which provides solutions for clients’ long-term investing needs; and investment banking, which renders services to middle market and emerging growth companies in terms of capital raising and mergers and acquisitions, among others.

Stepping it up

Boutique investment bank Punk Ziegel & Company, a firm that financially advises corporations, was acquired by Landenburg in May 2008 for an undisclosed amount.  Under the terms of the deal, Punk was merged into the Ladenburg subsidiary Thalmann & Co. Punk’s specialty arenas are health care-related technology, software and wireless services.  In July 2008, the firm acquired broker-dealer and investment advisor Triad Advisors in a transaction worth up to $37 million.  The addition of Triad brought the number of Ladenburg advisors up to 900 and the amount of client assets to $17 billion.  Despite the acquisition, Triad will continue to operate as a stand-alone business from its headquarters in Georgia.

More deals could be on the horizon, as BusinessWeek reported in August 2008 that Ladenburg is continuing to seek out additional acquisitions.  Shortly following the Triad acquisition, sources reported that Investacorp Inc., a Ladenburg subsidiary, was reaching out to other broker-dealers in the weeks and months following the deal with gross annual revenue between $60 million and $130 million.  The acquisition of Investacorp in October 2007 was a feather in the cap of Ladenburg.  The broker-dealer has about 500 representatives in the United States and $8.5 billion in client assets.

Members only

Ladenburg is a member of M&A International, an alliance of corporate advisors that collectively concentrate on middle-market deals.  Ladenburg contributes its expertise as a member and receives advice from internationally located firms in turn.  (Clients, meanwhile, benefit from conducting business with just one company.)  Companies belonging to the alliance complete an average of about 200 deals worth more than $7 billion a year.

Mixed bag

For the second quarter of 2009, Ladenburg reported $34.33 million in revenue, up 36 percent from the same period in 2008.  The firm reported a net loss of $5.16 million for the quarter, however, compared with $5.23 in net loss in the second quarter of 2008.  The firm brought in $14.31 million in revenue from Triad Advisors, $1.28 million in professional fee expense and $2.6 million in non-cash charges for depreciation, amortization and compensation expense.

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Ladenburg Thalmann & Co. Inc


4400 Biscayne Blvd
12th Floor
Miami, FL 33137
Phone: (305) 572-4100
Fax: (305) 572-4199
www.pzk.com

STATS


  • Employer Type: Public
  • Stock Symbol: LTS
  • Stock Exchange: NYSE
  • President & CEO: Richard J. Lampen
  • 2008 Employees: 748

Key Financials

  • 2008 Income: $-20 million
  • 2008 Revenue: $121 million

SALARY FINDER

SALARY FINDER

Health Service Administrator

  • $0
  • 25
  • 50
  • 75
  • 100
  • 100+
Yearly Salary Range (US$ Thousands)