Report: Focus Financial is preparing SEC paperwork for its initial public offering -- but is it jumping the gun?
With $325 million in revenues, the jumbo New York roll-up seeks to assuage a host of liquidity challenges
Doesn’t this produce a conflict of interest for clients of Focus Financial? Won’t shareholders become the #1 master. Where will that leave clients? Last? What’s that saying—No one can serve two masters?
Great piece on why the strong desire to do an IPO is not always the best idea. A lot of companies yearn to go public and wave that goal for years, but it’s not easy and there are a lot of people who will poke around into your business and performance. Your company had better have a great story, management, and financials. Not all have that, and the wish — even if you say it over and over again — will just not become reality just because that’s your ultimate exit strategy. It’s why every segment of financial services has those that do, those that don’t and those that …. well you know.
Thanks for the comments.
Charles Schwab Corporation is publicly traded firm. They also operate their own RIA division. They serve several masters. The same can be said of others like TD Ameritrade. These are all public companies operating their own fiduciary RIAs having to serve several stakeholders not the least of which are their shareholders.
Shareholders often demand ROR and it could be at the expense of others. I’m sure shareholders were quite excited at the fact that Schwab and the others are rolling out their own Robo RIA divisions too. It’s all about adding shareholder value.
Very interesting to see how the advisory services alternative to retail brokerage is slowly evolving. Large scale institutionalized support for professional standing in advisory services which give advisors control over their value proposition, cost structure, margins and professional standing is still a work in progress. Yet it clearly has an edge in consumer protection and ongoing accountability for recommendations for future generations of investors relative to brokerage and its responsiveness to the best interest of the investing public and the expert fiduciary standing of the advisor.
With RIA valuations ticking down and successions ticking up, Focus Financial deep sixes 'drunken sailor' pause, forgoes buyback plan and adds a CEO
CEO Rudy Adolf sees a 'softening' in multiples after a couple of frothy years when CI Financial dominated headlines and big RIA deals
August 13, 2022 at 12:39 AM
Focus Financial makes 'abrupt' CEO call, lets Rudy Adolf go into 'retirement,' with 'no solution in place;' the eighth RIA chief executive unseated since June as VCs move in -- where is the EBITDA?
Clayton, Dubilier & Rice closed on its $7-billion purchase of the roll-up on Aug. 31 -- with no hint that its parting of the ways with legendary 60-year-old founder was in the offing.
October 24, 2023 at 1:19 AM
Goldman Sachs-Creative Planning deal is bleeding defectors -- 16 more last week, report says -- auguring a 'potential disaster,' analysts warn
Dozens of former 'United Capital' advisors are fleeing at once, but Peter Mallouk is still battling to keep them, and Goldman Sachs may play legal hardball, sources say.
October 4, 2023 at 2:16 AM
Shirl Penney hands over 'front end of the house' to Andrew Marsh as Dynasty reboots -- post-$100-million raise, post-IPO withdrawal and post-Schwab partnering
The Dynasty CEO is handing over sales, custody relations, breakaways and M&A sales to the un-retired Canadian -- and wildly promoting from within.
September 21, 2023 at 1:53 AM
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