Focus Financial prepares SEC paperwork for IPO

But whether Focus Financial, which offers no metrics other than to say its run rate is at about $325 million of revenue, is filing for its IPO from a position of strength or necessity is unclear, and the answer may determine the success of such a move, according to John Furey, principal of Advisor Growth Strategies LLC in Phoenix.

“Seems the timing is a little early,” Furey comments in an e-mail. “The challenge is there only two other examples — NFP and Edelman — that both tried IPO and wound up going private. For me, valuation will be difficult as it still pretty opaque for private wealth firms. We must remember, Focus has partner firms that are all operated independently. The public market will certainly realize they are buying into a basket of smaller businesses.” 

Read More