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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

Author Lisa Shidler July 17, 2012 at 3:54 PM
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Adam Birenbaum: We all have our own individual management agreements, which is important to understand.

Stephen Winks

Stephen Winks

July 17, 2012 — 6:31 PM

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.




July 19, 2012 — 5:14 PM

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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Summit Financial Wealth Advisors was sold to Focus Financial in 2014, growing its assets by $400 million since then but keeping staffing about the same

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Top Executive: Mont Levy

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