RIABiz

News, Vision & Voice for the Advisory Community

RIABiz

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

Tuesday, July 7, 2015 – 3:36 PM by Brooke Southall
Admin:
no description available
If Focus Financial has an IPO, the vultures may feast first, best.

Related Moves

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 – 12:39 AM

Dan Seivert's ripping success in RIA M&A deals has odd side effect of having some sidearm staff leave for new vistas

Carolyn Armitage and Mark Bruno left to mutual benefit, while Echelon Partners roars on, feeding the beast of deal-crazed RIA buyers and sellers.

July 20, 2021 – 1:17 AM

Looking past Covid-19 pandemic, Louisiana RIA buys $1-million building after hitting $1 billion in AUM and hiring the town's mayor

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

December 17, 2020 – 3:02 AM

March 12, 2020 – 1:45 PM


Mentioned in this article:

Advisor Growth Strategies, LLC
Consulting Firm
Top Executive: John Furey

Diamond Consultants
Recruiter
Top Executive: Mindy Diamond

Focus Financial Partners, LLC
Consolidator/Roll-up Firm
Top Executive: Rudy Adolf

DeVoe & Company
Consulting Firm
Top Executive: David DeVoe




Teresa Vollenweider

Teresa Vollenweider

July 7, 2015 — 5:23 PM

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?

TraceyG

TraceyG

July 7, 2015 — 5:34 PM

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.

RIABiz

RIABiz

July 7, 2015 — 9:01 PM

Thanks for the comments.

Brooke

John Holmes

John Holmes

July 7, 2015 — 11:10 PM

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.

Stephen Winks

Stephen Winks

July 8, 2015 — 3:42 PM

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.

SCW
Stephen Winks

RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING


RIABiz Directory sponsored by:

Directory Sponsor Logo