What RIA principals in the Focus Financial family have to say about a rumored deal for the consolidator
Buckingham/BAM, The Colony Group and LLBH leaders see it as business as usual that Summit would want to roll over ownership of its stake
![Stephen Winks](/_next/image?url=https%3A%2F%2Fwww.gravatar.com%2Favatar.php%3Fgravatar_id%3D56f485f5b262bcffd70f76b7db918db4%26default%3Dhttps%253A%252F%252Fucarecdn.com%252F0b5addcb-6e7e-48f1-9e88-2279491e69b9%252Fiphonelogo.png%26size%3D50&w=1200&q=75)
Stephen Winks
Focus’s stregnth is its weakness—every advisor is a free agent and very sucessful. The weakness is it is not possible to create scale, advance innovation, enhance the advisors value proposition, drive down cost, or create a brand as everyone is an independent free agent—thus, its achilles heel. Its impressive critical mass achieved accrues little value added for its acquired firms as an operating entity.
SCW
![Chris](/_next/image?url=https%3A%2F%2Fwww.gravatar.com%2Favatar.php%3Fgravatar_id%3D71b9118ed73bdcf20ade67d34ee18c64%26default%3Dhttps%253A%252F%252Fucarecdn.com%252F0b5addcb-6e7e-48f1-9e88-2279491e69b9%252Fiphonelogo.png%26size%3D50&w=1200&q=75)
Chris
This is simple, word is that Focus owns an estimated $22M in EBITDA and they have $175 in debt and $80 million in preferred stock which leaves very little room for equity shareholders. That is a heavy cap table. I agree with SCM’s view, but regardless of them owning a non-controlling interest in an amalgamation of disparate firms their cap table is a joke. In an environment where The Mutual Fund Store and Edelman traded a very rich multiples and Summit has been shopping their piece hard for over a year suggests their is no bid.
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Looking past Covid-19 pandemic, Louisiana RIA buys $1-million building after hitting $1 billion in AUM and hiring the town's mayor
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