| | |
Page
|
| |||
| | | | 1 | | | |
| | | | 15 | | | |
| | | | 25 | | | |
| | | | 120 | | | |
| | | | 153 | | | |
| | | | 155 | | | |
| | | | 156 | | | |
| | | | 157 | | | |
| | | | 158 | | | |
| | | | 164 | | | |
| | | | 165 | | | |
| | | | 166 | | | |
| | | | 167 | | | |
| | | | 174 | | | |
| | | | 178 | | | |
| | | | 178 | | | |
| | | | 180 | | | |
| | | | 181 | | | |
| | | | A-1 | | | |
| | | | B-1 | | | |
| | | | C-1 | | | |
| | | | D-1 | | | |
| | | | E-1 | | |
Entire Period
|
| |
Premium
to 1-Day |
| |
Premium
to 30-Day |
| |
Premium/(Discount)
to 52-Week High |
| |||||||||
25th Percentile
|
| | | | 10% | | | | | | 21% | | | | | | (4)% | | |
75th Percentile
|
| | | | 51% | | | | | | 52% | | | | | | 21% | | |
Median
|
| | | | 18% | | | | | | 33% | | | | | | 7% | | |
Mean
|
| | | | 31% | | | | | | 41% | | | | | | 7% | | |
Selected Companies
|
| |
Price / Earnings Multiple
|
| |
EV / EBITDA Multiple
|
| ||||||||||||||||||
| | |
2023E
|
| |
2024E
|
| |
2023E
|
| |
2024E
|
| ||||||||||||
Median – Brokerage / Wealth
|
| | | | 10.8x | | | | | | 10.7x | | | | | | 8.2x | | | | | | 7.9x | | |
Median – Discount Brokers
|
| | | | 17.4 | | | | | | 14.1 | | | | | | 12.7 | | | | | | 11.4 | | |
Median – Tech Enabled Wealth
|
| | | | 13.6 | | | | | | 12.7 | | | | | | 9.3 | | | | | | 8.6 | | |
| | |
Price / CY 2023E EPS
|
| |||||||||
| | |
Mean
|
| |
Median
|
| ||||||
Independent Broker Dealers(1)
|
| | | | 12.5x | | | | | | 12.5x | | |
TAMPs
|
| | | | 20.0x | | | | | | 16.0x | | |
Multi-Affiliate Asset Managers
|
| | | | 7.5x | | | | | | 7.4x | | |
Announced
|
| |
Acquiror
|
| |
Target
|
|
March 2019 | | | Blucora, Inc. | | | 1st Global, Inc. | |
April 2018 | | | Hellman & Friedman LLC | | | Financial Engines Inc. | |
April 2017 | | | Stone Point Capital LLC/ Kohlberg Kravis Roberts & Co. LP | | | Focus Financial Partners, LLC | |
October 2015 | | | Blucora, Inc. | | | HD Vest Financial Services Inc. | |
November 2015 | | | Financial Engines Inc. | | | The Mutual Fund Store LLC | |
November 2019 | | | Advisor Group, Inc. | | | Ladenburg Thalmann Financial Services Inc. | |
December 2020 | | | LPL Financial Holdings Inc./ Macquarie Management Holdings, Inc. | | | Waddell & Reed Financial, Inc. | |
Announced
|
| |
Acquiror
|
| |
Target
|
|
April 2017 | | | Huatai Securities Co., Ltd. | | | Assetmark Inc. | |
Announced
|
| |
Acquiror
|
| |
Target
|
|
October 2020 | | | Morgan Stanley | | | Eaton Vance Corp. | |
February 2020 | | | Virtus Investment Partners, Inc. | | | RidgeWorth Investments | |
February 2020 | | | Franklin Resources, Inc. | | | Legg Mason, Inc. | |
November 2018 | | | Victory Capital Holdings Inc. | | | USAA Asset Management Company | |
($ in millions except per share data)
|
| |
2023E
|
| |
2024E
|
| |
2025E
|
| |
2026E
|
| |
2027E
|
| |||||||||||||||
Revenue
|
| | | $ | 2,450 | | | | | $ | 3,012 | | | | | $ | 3,661 | | | | | $ | 4,415 | | | | | $ | 5,251 | | |
Adjusted EBITDA(1)
|
| | | | 628 | | | | | | 792 | | | | | | 1,018 | | | | | | 1,286 | | | | | | 1,586 | | |
Adjusted EBITA After Non-Cash Equity Compensation Expense(2)
|
| | | | 576 | | | | | | 740 | | | | | | 957 | | | | | | 1,212 | | | | | | 1,500 | | |
Net Operating Profit After Tax(3)
|
| | | | 134 | | | | | | 208 | | | | | | 317 | | | | | | 455 | | | | | | 626 | | |
Unlevered Free Cash Flow (Before Acquisition-Related Capital Deployment)(4)(6)
|
| | | | 443 | | | | | | 549 | | | | | | 705 | | | | | | 891 | | | | | | 1,100 | | |
Unlevered Free Cash Flow (After Acquisition-Related Capital Deployment)(5)(6)
|
| | | | (438) | | | | | | (753) | | | | | | (869) | | | | | | (607) | | | | | | (424) | | |
Pre-Tax Adjusted Net Income(7)
|
| | | | 418 | | | | | | 504 | | | | | | 687 | | | | | | 948 | | | | | | 1,236 | | |
Adjusted Net Income (Burdened by Non-Cash Equity Compensation Excluding Tax Adjustments)(8)
|
| | | | 281 | | | | | | 345 | | | | | | 472 | | | | | | 654 | | | | | | 859 | | |
Adjusted Net Income Excluding Tax Adjustments(9)
|
| | | | 305 | | | | | | 368 | | | | | | 502 | | | | | | 692 | | | | | | 902 | | |
Tax Adjustments(10)
|
| | | | 71 | | | | | | 87 | | | | | | 107 | | | | | | 129 | | | | | | 152 | | |
Adjusted Net Income Excluding Tax Adjustments Per Share(11)
|
| | | | 3.59 | | | | | | 4.14 | | | | | | 5.46 | | | | | | 7.32 | | | | | | 9.36 | | |
Tax Adjustments Per Share(12)
|
| | | | 0.84 | | | | | | 0.98 | | | | | | 1.16 | | | | | | 1.37 | | | | | | 1.57 | | |
Payment Date ($ in millions)
|
| |
Estimated TRA
Payment |
| |
% Benefit to
TRA Holders |
| |
Implied
Aggregate Benefit of Tax Attribute |
| |
Less Payment
to TRA Holders |
| |
TRA Benefit to
Company(1) |
| |||||||||||||||
02/16/23
|
| | | $ | 10 | | | | | | 85.0% | | | | | $ | 11 | | | | | $ | (10) | | | | | $ | 2 | | |
04/15/23
|
| | | | 12 | | | | | | 85.0% | | | | | | 15 | | | | | | (12) | | | | | | 2 | | |
04/15/24
|
| | | | 13 | | | | | | 85.0% | | | | | | 15 | | | | | | (13) | | | | | | 2 | | |
04/15/25
|
| | | | 13 | | | | | | 85.0% | | | | | | 15 | | | | | | (13) | | | | | | 2 | | |
04/15/26
|
| | | | 13 | | | | | | 85.0% | | | | | | 16 | | | | | | (13) | | | | | | 2 | | |
04/15/27
|
| | | | 14 | | | | | | 85.0% | | | | | | 16 | | | | | | (14) | | | | | | 2 | | |
04/15/28
|
| | | | 14 | | | | | | 85.0% | | | | | | 16 | | | | | | (14) | | | | | | 2 | | |
04/16/29
|
| | | | 23 | | | | | | 85.0% | | | | | | 27 | | | | | | (23) | | | | | | 4 | | |
04/16/30
|
| | | | 14 | | | | | | 85.0% | | | | | | 17 | | | | | | (14) | | | | | | 3 | | |
04/16/31
|
| | | | 15 | | | | | | 85.0% | | | | | | 18 | | | | | | (15) | | | | | | 3 | | |
04/15/32
|
| | | | 15 | | | | | | 85.0% | | | | | | 18 | | | | | | (15) | | | | | | 3 | | |
04/16/33
|
| | | | 15 | | | | | | 85.0% | | | | | | 18 | | | | | | (15) | | | | | | 3 | | |
04/16/34
|
| | | | 15 | | | | | | 85.0% | | | | | | 18 | | | | | | (15) | | | | | | 3 | | |
04/16/35
|
| | | | 15 | | | | | | 85.0% | | | | | | 18 | | | | | | (15) | | | | | | 3 | | |
04/15/36
|
| | | | 16 | | | | | | 85.0% | | | | | | 19 | | | | | | (16) | | | | | | 3 | | |
04/16/37
|
| | | | 9 | | | | | | 85.0% | | | | | | 11 | | | | | | (9) | | | | | | 2 | | |
04/16/38
|
| | | | 2 | | | | | | 85.0% | | | | | | 3 | | | | | | (2) | | | | | | 0 | | |
04/16/39
|
| | | | 1 | | | | | | 85.0% | | | | | | 1 | | | | | | (1) | | | | | | 0 | | |
04/15/40
|
| | | | 0 | | | | | | 85.0% | | | | | | 0 | | | | | | (0) | | | | | | 0 | | |
04/16/41
|
| | | | 0 | | | | | | 85.0% | | | | | | 0 | | | | | | (0) | | | | | | 0 | | |
Total
|
| | | $ | 230 | | | | | | | | | | | $ | 271 | | | | | $ | (230) | | | | | $ | 41 | | |
Payment Date ($ in millions)
|
| |
Estimated TRA
Payment |
| |
% Benefit to
TRA Holders |
| |
Implied
Aggregate Benefit of Tax Attribute |
| |
Less Payment
to TRA Holders |
| |
TRA Benefit to
Company(1) |
| |||||||||||||||
02/13/23
|
| | | $ | 0 | | | | | | 85.0% | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | |
04/15/24
|
| | | | 15 | | | | | | 85.0% | | | | | | 18 | | | | | | (15) | | | | | | 3 | | |
04/15/25
|
| | | | 15 | | | | | | 85.0% | | | | | | 18 | | | | | | (15) | | | | | | 3 | | |
04/15/26
|
| | | | 16 | | | | | | 85.0% | | | | | | 18 | | | | | | (16) | | | | | | 3 | | |
04/15/27
|
| | | | 16 | | | | | | 85.0% | | | | | | 19 | | | | | | (16) | | | | | | 3 | | |
04/14/28
|
| | | | 16 | | | | | | 85.0% | | | | | | 19 | | | | | | (16) | | | | | | 3 | | |
04/15/29
|
| | | | 25 | | | | | | 85.0% | | | | | | 30 | | | | | | (25) | | | | | | 4 | | |
04/15/30
|
| | | | 17 | | | | | | 85.0% | | | | | | 20 | | | | | | (17) | | | | | | 3 | | |
04/15/31
|
| | | | 18 | | | | | | 85.0% | | | | | | 21 | | | | | | (18) | | | | | | 3 | | |
04/14/32
|
| | | | 18 | | | | | | 85.0% | | | | | | 22 | | | | | | (18) | | | | | | 3 | | |
04/15/33
|
| | | | 19 | | | | | | 85.0% | | | | | | 22 | | | | | | (19) | | | | | | 3 | | |
04/15/34
|
| | | | 20 | | | | | | 85.0% | | | | | | 24 | | | | | | (20) | | | | | | 4 | | |
04/15/35
|
| | | | 21 | | | | | | 85.0% | | | | | | 24 | | | | | | (21) | | | | | | 4 | | |
04/14/36
|
| | | | 22 | | | | | | 85.0% | | | | | | 26 | | | | | | (22) | | | | | | 4 | | |
04/15/37
|
| | | | 24 | | | | | | 85.0% | | | | | | 28 | | | | | | (24) | | | | | | 4 | | |
04/15/38
|
| | | | 28 | | | | | | 85.0% | | | | | | 33 | | | | | | (28) | | | | | | 5 | | |
04/15/39
|
| | | | 6 | | | | | | 85.0% | | | | | | 8 | | | | | | (6) | | | | | | 1 | | |
04/14/40
|
| | | | 1 | | | | | | 85.0% | | | | | | 2 | | | | | | (1) | | | | | | 0 | | |
04/15/41
|
| | | | 1 | | | | | | 85.0% | | | | | | 1 | | | | | | (1) | | | | | | 0 | | |
Total
|
| | | $ | 300 | | | | | | | | | | | $ | 353 | | | | | $ | (300) | | | | | $ | 53 | | |
Year ($ in millions)
|
| |
Tax Basis
Intangible Amortization |
| |
Tax
Rate |
| |
Tax
Cash Benefit(1) |
| |||||||||
2023
|
| | | $ | 264 | | | | | | 27.0% | | | | | $ | 71 | | |
2024
|
| | | | 323 | | | | | | 27.0% | | | | | | 87 | | |
2025
|
| | | | 397 | | | | | | 27.0% | | | | | | 107 | | |
2026
|
| | | | 480 | | | | | | 27.0% | | | | | | 129 | | |
2027
|
| | | | 561 | | | | | | 27.0% | | | | | | 152 | | |
2028
|
| | | | 598 | | | | | | 27.0% | | | | | | 161 | | |
2029
|
| | | | 595 | | | | | | 27.0% | | | | | | 161 | | |
2030
|
| | | | 589 | | | | | | 27.0% | | | | | | 159 | | |
2031
|
| | | | 575 | | | | | | 27.0% | | | | | | 155 | | |
2032
|
| | | | 560 | | | | | | 27.0% | | | | | | 151 | | |
2033
|
| | | | 537 | | | | | | 27.0% | | | | | | 145 | | |
2034
|
| | | | 503 | | | | | | 27.0% | | | | | | 136 | | |
2035
|
| | | | 483 | | | | | | 27.0% | | | | | | 130 | | |
2036
|
| | | | 445 | | | | | | 27.0% | | | | | | 120 | | |
2037
|
| | | | 377 | | | | | | 27.0% | | | | | | 102 | | |
2038
|
| | | | 342 | | | | | | 27.0% | | | | | | 92 | | |
2039
|
| | | | 279 | | | | | | 27.0% | | | | | | 75 | | |
2040
|
| | | | 203 | | | | | | 27.0% | | | | | | 55 | | |
2041
|
| | | | 119 | | | | | | 27.0% | | | | | | 32 | | |
2042
|
| | | | 34 | | | | | | 27.0% | | | | | | 9 | | |
Total
|
| | | $ | 8,265 | | | | | | | | | | | $ | 2,232 | | |
($ in millions except per share data)
|
| |
2023E
|
| |
2024E
|
| |
2025E
|
| |
2026E
|
| |
2027E
|
| |||||||||||||||
Revenue
|
| | | $ | 2,450 | | | | | $ | 3,012 | | | | | $ | 3,668 | | | | | $ | 4,597 | | | | | $ | 5,785 | | |
Adjusted EBITDA(1)
|
| | | | 628 | | | | | | 792 | | | | | | 1,020 | | | | | | 1,339 | | | | | | 1,741 | | |
($ in millions except per share data)
|
| |
2023E
|
| |
2024E
|
| |
2025E
|
| |
2026E
|
| |
2027E
|
| |||||||||||||||
Pre-Tax Adjusted Net Income(2)
|
| | | | 418 | | | | | | 504 | | | | | | 689 | | | | | | 965 | | | | | | 1,298 | | |
Adjusted Net Income Excluding Tax Adjustments(3)
|
| | | | 305 | | | | | | 368 | | | | | | 503 | | | | | | 704 | | | | | | 947 | | |
Tax Adjustments(4)
|
| | | | 71 | | | | | | 87 | | | | | | 107 | | | | | | 139 | | | | | | 179 | | |
Adjusted Net Income Excluding Tax Adjustments Per Share(5)
|
| | | | 3.59 | | | | | | 4.14 | | | | | | 5.46 | | | | | | 7.39 | | | | | | 9.69 | | |
Tax Adjustments Per Share(6)
|
| | | | 0.84 | | | | | | 0.98 | | | | | | 1.17 | | | | | | 1.46 | | | | | | 1.83 | | |
Named Executive Officer
|
| |
Cash ($)(1)
|
| |
Equity
Awards ($)(2) |
| |
Perquisites /
Benefits(3) |
| |
Total ($)
|
| ||||||||||||
Ruediger Adolf
|
| | | $ | 4,594,347 | | | | | $ | 16,441,483 | | | | | $ | 51,420 | | | | | $ | 21,087,250 | | |
Rajini Sundar Kodialam
|
| | | | 3,014,469 | | | | | | 12,241,887 | | | | | | 50,852 | | | | | | 15,307,208 | | |
Leonard Chang
|
| | | | 1,699,752 | | | | | | 10,735,193 | | | | | | 37,900 | | | | | | 12,472,845 | | |
James Shanahan
|
| | | | 1,558,446 | | | | | | 9,539,996 | | | | | | 51,420 | | | | | | 11,149,862 | | |
J. Russell McGranahan
|
| | | | 1,394,400 | | | | | | 8,732,312 | | | | | | 51,252 | | | | | | 10,177,964 | | |
Named Executive Officer
|
| |
Cash Severance ($)
|
| |
Prorated
Bonus ($) |
| |
Total ($)
|
| |||||||||
Ruediger Adolf
|
| | | $ | 4,091,198 | | | | | $ | 503,149 | | | | | $ | 4,594,347 | | |
Rajini Sundar Kodialam
|
| | | | 2,684,340 | | | | | | 330,129 | | | | | | 3,014,469 | | |
Leonard Chang
|
| | | | 1,435,026 | | | | | | 264,726 | | | | | | 1,699,752 | | |
James Shanahan
|
| | | | 1,336,543 | | | | | | 221,903 | | | | | | 1,558,446 | | |
J. Russell McGranahan
|
| | | | 1,195,855 | | | | | | 198,545 | | | | | | 1,394,400 | | |
Description
|
| |
Amount
|
| |||
Financial advisory fees and expenses(1)
|
| | | $ | 30,104,000.00 | | |
Legal fees and other professional fees and expenses(2)
|
| | | $ | 18,093,000.00 | | |
SEC filing fees
|
| | | $ | 510,083.74 | | |
Printing, proxy solicitation, filing and mailing costs
|
| | | $ | 208,000.00 | | |
Miscellaneous | | | | $ | 1,769,000.00 | | |
Total
|
| | | $ | 50,684,083.74 | | |
Name
|
| |
Age
|
| |
Position
|
|
Ruediger Adolf | | |
60
|
| | Chief Executive Officer and Chairman | |
Rajini Sundar Kodialam | | |
55
|
| | Chief Operating Officer and Director | |
James D. Carey. | | |
56
|
| | Independent Director | |
Joseph Feliciani, Jr. | | |
66
|
| | Independent Director | |
George S. LeMieux. | | |
54
|
| | Independent Director | |
Greg S. Morganroth, MD | | |
58
|
| | Independent Director | |
Fayez S. Muhtadie | | |
45
|
| | Independent Director | |
Elizabeth R. Neuhoff | | |
53
|
| | Independent Director | |
Name
|
| |
Age
|
| |
Position
|
|
Ruediger Adolf | | |
60
|
| | Chief Executive Officer and Chairman | |
Rajini Sundar Kodialam | | |
55
|
| | Chief Operating Officer and Director | |
Leonard Chang | | |
48
|
| | Senior Managing Director and Head of M&A | |
James Shanahan | | |
53
|
| | Chief Financial Officer | |
J. Russell McGranahan | | |
53
|
| | General Counsel & Corporate Secretary | |
Fiscal Year
|
| |
High
|
| |
Low
|
| |
Dividend
Paid |
| |||||||||
2021 | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 56.56 | | | | | $ | 40.93 | | | | | | — | | |
Second Quarter
|
| | | $ | 54.75 | | | | | $ | 41.76 | | | | | | — | | |
Third Quarter
|
| | | $ | 54.42 | | | | | $ | 47.21 | | | | | | — | | |
Fourth Quarter
|
| | | $ | 69.13 | | | | | $ | 51.44 | | | | | | — | | |
2022 | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 62.24 | | | | | $ | 42.16 | | | | | | — | | |
Second Quarter
|
| | | $ | 46.63 | | | | | $ | 30.88 | | | | | | — | | |
Third Quarter
|
| | | $ | 44.41 | | | | | $ | 30.86 | | | | | | — | | |
Fourth Quarter
|
| | | $ | 41.92 | | | | | $ | 30.27 | | | | | | — | | |
2023 | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 52.62 | | | | | $ | 37.30 | | | | | | — | | |
Second Quarter (through June 9, 2023)
|
| | | $ | 52.41 | | | | | $ | 50.66 | | | | | | — | | |
| | |
Class A Common
Stock |
| |
Class B Common
Stock |
| |
Combined Voting
Power(1) |
| |||||||||||||||||||||||||||
Name of Beneficial Owner
|
| |
Number
|
| |
%
|
| |
Number
|
| |
%
|
| |
Number
|
| |
%
|
| ||||||||||||||||||
5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Entities affiliated with Stone Point(2)
|
| | | | 7,798,810 | | | | | | 11.8% | | | | | | 8,250,165 | | | | | | 65.8% | | | | | | 16,048,975 | | | | | | 20.4% | | |
Capital World Investors(3)
|
| | | | 5,451,302 | | | | | | 8.3% | | | | | | — | | | | | | 0.0% | | | | | | 5,451,302 | | | | | | 6.9% | | |
Vanguard Group Inc.(4)
|
| | | | 5,085,477 | | | | | | 7.7% | | | | | | — | | | | | | 0.0% | | | | | | 5,085,477 | | | | | | 6.5% | | |
BlackRock, Inc.(5)
|
| | | | 3,775,028 | | | | | | 5.7% | | | | | | — | | | | | | 0.0% | | | | | | 3,775,028 | | | | | | 4.8% | | |
Directors and Named Executive Officers: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ruediger Adolf
|
| | | | — | | | | | | 0.0% | | | | | | 68,969 | | | | | | 0.5% | | | | | | 68,969 | | | | | | 0.1% | | |
Rajini Sundar Kodialam
|
| | | | — | | | | | | 0.0% | | | | | | 6,115 | | | | | | 0.0% | | | | | | 6,115 | | | | | | 0.0% | | |
J. Russell McGranahan
|
| | | | 1,000 | | | | | | 0.0% | | | | | | 4,134 | | | | | | 0.0% | | | | | | 5,134 | | | | | | 0.0% | | |
Leonard Chang
|
| | | | — | | | | | | 0.0% | | | | | | 4,161 | | | | | | 0.0% | | | | | | 4,161 | | | | | | 0.0% | | |
James Shanahan(6)
|
| | | | — | | | | | | 0.0% | | | | | | 3,845 | | | | | | 0.0% | | | | | | 3,845 | | | | | | 0.0% | | |
Joseph Feliciani, Jr.
|
| | | | — | | | | | | 0.0% | | | | | | 1,021 | | | | | | 0.0% | | | | | | 1,021 | | | | | | 0.0% | | |
Greg S. Morganroth, MD
|
| | | | — | | | | | | 0.0% | | | | | | 1,021 | | | | | | 0.0% | | | | | | 1,021 | | | | | | 0.0% | | |
James D. Carey(7)
|
| | | | — | | | | | | 0.0% | | | | | | — | | | | | | 0.0% | | | | | | — | | | | | | 0.0% | | |
George S. LeMieux
|
| | | | — | | | | | | 0.0% | | | | | | — | | | | | | 0.0% | | | | | | — | | | | | | 0.0% | | |
Fayez S. Muhtadie
|
| | | | — | | | | | | 0.0% | | | | | | — | | | | | | 0.0% | | | | | | — | | | | | | 0.0% | | |
Elizabeth R. Neuhoff
|
| | | | — | | | | | | 0.0% | | | | | | — | | | | | | 0.0% | | | | | | — | | | | | | 0.0% | | |
Directors and executive officers as a group
(11 individuals)* |
| | | | 1,000 | | | | | | 0.0% | | | | | | 89,266 | | | | | | 0.7% | | | | | | 90,266 | | | | | | 0.1% | | |
| | |
Page
|
| |||
| | | | A-2 | | | |
| | | | A-2 | | | |
| | | | A-3 | | | |
| | | | A-4 | | | |
| | | | A-4 | | | |
| | | | A-4 | | | |
| | | | A-4 | | | |
| | | | A-5 | | | |
| | | | A-5 | | | |
| | | | A-5 | | | |
| | | | A-5 | | | |
| | | | A-5 | | | |
| | | | A-5 | | | |
| | | | A-5 | | | |
| | | | A-5 | | | |
| | | | A-5 | | | |
| | | | A-5 | | | |
| | | | A-6 | | | |
| | | | A-6 | | | |
| | | | A-9 | | | |
| | | | A-10 | | | |
| | | | A-10 | | | |
| | | | A-10 | | | |
| | | | A-35 | | | |
| | | | A-39 | | | |
| | | | A-39 | | | |
| | | | A-44 | | | |
| | | | A-48 | | | |
| | | | A-50 | | | |
| | | | A-50 | | | |
| | | | A-52 | | | |
| | | | A-53 | | | |
| | | | A-53 | | | |
| | | | A-54 | | | |
| | | | A-55 | | | |
| | | | A-55 | | | |
| | | | A-57 | | | |
| | | | A-57 | | |
| | |
Page
|
| |||
| | | | A-58 | | | |
| | | | A-59 | | | |
| | | | A-59 | | | |
| | | | A-60 | | | |
| | | | A-60 | | | |
| | | | A-64 | | | |
| | | | A-67 | | | |
| | | | A-67 | | | |
| | | | A-68 | | | |
| | | | A-68 | | | |
| | | | A-68 | | | |
| | | | A-68 | | | |
| | | | A-68 | | | |
| | | | A-69 | | | |
| | | | A-70 | | | |
| | | | A-70 | | | |
| | | | A-70 | | | |
| | | | A-71 | | | |
| | | | A-74 | | | |
| | | | A-74 | | | |
| | | | A-74 | | | |
| | | | A-74 | | | |
| | | | A-74 | | | |
| | | | A-74 | | | |
| | | | A-76 | | | |
| | | | A-77 | | | |
| | | | A-78 | | | |
| | | | A-78 | | | |
| | | | A-78 | | | |
| | | | A-78 | | | |
| | | | A-79 | | | |
| | | | A-79 | | | |
| | | | A-79 | | | |
| | | | A-79 | | | |
| | | | A-80 | | | |
| | | | A-80 | | | |
| | | | A-80 | | |
| Annex A | | | Defined Terms | | | ||
| Exhibit A | | | Form of Support Agreement | | |
Exhibit A
|
|
| Exhibit B | | | Form of Exchange Notice | | |
Exhibit B
|
|
| Exhibit C | | |
Certificate of Incorporation of the Surviving Company
|
| |
Exhibit C
|
|
| Exhibit D-1 | | | Form of Affirmative Consent Notice | | |
Exhibit D-1
|
|
| Exhibit D-2 | | | Form of Negative Consent Notice | | |
Exhibit D-2
|
|
Term
|
| |
Section
|
|
2023 Annual Bonus Plans | | | 6.9(c) | |
Action | | | 5.1(h)(i) | |
Affirmative Consent Notice | | | 6.19(a) | |
Agreement | | | Preamble | |
Agreed Early Termination Documents | | | 6.17 | |
Alternative Acquisition Agreement | | | 6.2(e)(iv) | |
Antitrust Law | | | 6.5(f) | |
Applicable Date | | | 5.1(e)(i) | |
Bankruptcy and Equity Exception | | | 5.1(c)(i) | |
Benefit Plans | | | 5.1(i)(i) | |
Bylaws | | | 2.4 | |
BD Associated Person | | | 5.1(y)(v) | |
Cash Sweep Program | | | 5.1(z)(v) | |
CD&R | | | Recitals | |
Certificates of Merger | | | 1.4(a) | |
CFTC Associated Person | | | 5.1(y)(v) | |
Change of Recommendation | | | 6.2(e)(iv) | |
Charter | | | 2.1 | |
Chosen Courts | | | 9.5(a) | |
Client Consent Notices | | | 6.19(a) | |
Closing | | | 1.3 | |
Closing Date | | | 1.3 | |
CMA | | | 6.19(f) | |
Code | | | 4.4(g) | |
Company | | | Preamble | |
Company Board | | | Recitals | |
Company Certificate of Merger | | | 1.4(a) | |
Company Disclosure Schedule | | | 5.1 | |
Company Equity Awards | | | 5.1(b)(ii) | |
Company Liability Limitation | | | 8.2(d)(ii) | |
Company Merger | | | Recitals | |
Company Merger Effective Time | | | 1.4(a) | |
Company Merger Sub | | | Preamble | |
Company Option | | | 4.5(a)(i) | |
Company Permits | | | 5.1(j)(ii) | |
Company Recommendation | | | 5.1(c)(iii) | |
Company Reports Company | | | 5.1(e)(i) | |
Restricted Share | | | 4.5(c) | |
Company RSUs | | | 4.5(b) | |
Company Stock | | | Recitals | |
Term
|
| |
Section
|
|
Company Stockholders Meeting | | | 6.4 | |
Company Termination Fee | | | 8.2(b) | |
Confidential Information | | | 5.1(q)(i) | |
Confidentiality Agreement | | | 6.6(b) | |
Contingent Cash Award | | | 4.5(a)(ii) | |
Continuing Employee | | | 6.9(a) | |
Contract | | | 5.1(d)(ii) | |
Data Security Requirements | | | 5.1(q)(iii) | |
Debt Financing | | | 6.18(a) | |
Debt Marketing Materials | | | 6.18(a)(iii) | |
Disqualification Events | | | 5.1(y)(viii) | |
D&O Insurance | | | 6.11(c) | |
DGCL | | | Recitals | |
DLLCA | | | Recitals | |
Dissenting Shares | | | 4.2(a) | |
DOJ | | | 6.5(b) | |
Draft Early Termination Documents | | | 6.17 | |
DTC | | | 4.4(c)(i) | |
Enforcement Costs | | | 8.2(c) | |
Equity Commitment Letters | | | 5.2(f)(i) | |
Equity Financing | | | 5.2(f)(i) | |
ERISA | | | 5.1(i)(i) | |
ERISA Client | | | 5.1(x)(ii) | |
Exchange Act | | | 5.1(d)(i) | |
Excluded Benefits | | | 6.9(a) | |
Excluded Shares | | | 4.2(a) | |
Excluded Units | | | 4.3(a) | |
Existing Stockholders | | | Recitals | |
Financing Conditions | | | 5.2(f)(ii) | |
FINRA Approvals | | | 6.19(f) | |
Focus LLC | | | Preamble | |
Fund Board | | | 6.19(c)(i) | |
FTC | | | 6.5(b) | |
Go-Shop Period | | | 6.2(a) | |
Governmental Authority | | | 5.1(d)(i) | |
Guarantees | | | Recitals | |
Guarantor | | | Recitals | |
HSR Act | | | 5.1(d)(i) | |
Indemnified Party or Indemnified Parties | | | 6.11(a) | |
Independent Expert | | | 6.17 | |
Insurance Policies | | | 5.1(r) | |
Interim Advisory Contract | | | 6.19(c)(i) | |
International Plan | | | 5.1(i)(vi) | |
Term
|
| |
Section
|
|
Intervening Event | | | 6.2(f)(ii) | |
IRS | | | 5.1(i)(i) | |
Labor Agreement | | | 5.1(p)(i) | |
Laws | | | 5.1(j)(i) | |
LLC Certificate of Merger | | | 1.4(a) | |
LLC Merger | | | Recitals | |
LLC Merger Effective Time | | | 1.4(a) | |
LLC Merger Sub | | | Preamble | |
Match Period | | | 6.2(f)(i) | |
Material Contract | | | 5.1(k)(i) | |
Maximum Premium | | | 6.11(c) | |
Mergers | | | Recitals | |
Merger Consideration | | | 4.2(a) | |
Multiemployer Plan | | | 5.1(i)(ii) | |
Negative Consent Client | | | 6.19(a) | |
Negative Consent Notice | | | 6.19(a) | |
New York Courts | | | 9.5(a) | |
No-Shop Period Start Date | | | 6.2(a) | |
Objections Statement | | | 6.17 | |
Option Consideration | | | 4.5(a)(i) | |
Order | | | 7.1(c) | |
Outside Date | | | 8.1(b) | |
Parent | | | Preamble | |
Parent Disclosure Schedule | | | 5.2 | |
Parent Liability Limitation | | | 8.2(e) | |
Parties | | | Preamble | |
Paying Agent | | | 4.4(a) | |
Payment Fund | | | 4.4(b) | |
Plan Assets | | | 5.1(x)(i) | |
Plan Clients | | | 5.1(x)(ii) | |
Pre-Closing Period | | | 6.1(a) | |
Preferred Stock | | | 5.1(b)(i) | |
Prospective RIA Subsidiary | | | 6.19(d) | |
Proxy Statement | | | 6.3(a) | |
QPAM Exemption | | | 5.1(x)(ii) | |
Regulation FD | | | 6.18(e) | |
Reimbursement Obligations | | | 6.18(b) | |
Required Amounts | | | 5.2(f)(v) | |
RIA Associated Person | | | 5.1(y)(v) | |
Schedule 13e-3 | | | 6.3(b) | |
Security Incident | | | 5.1(q)(iii) | |
SEC | | | 5.1 | |
SEC Clearance Date | | | 6.3(c) | |
Term
|
| |
Section
|
|
Securities Act | | | 5.1(d)(i) | |
Service Provider | | | 5.1(i)(i) | |
Similar Law | | | 5.1(x)(i) | |
Special Committee | | | Recitals | |
Specified Acquisition | | | 6.1(d) | |
State BD Approvals | | | 6.19(f) | |
Support Agreement | | | Recitals | |
Surviving Corporation | | | 1.2(a) | |
Surviving LLC | | | 1.2(a) | |
Tail Period | | | 6.11(c) | |
Topco | | | 6.24 | |
Takeover Law | | | 5.1(m) | |
Trade Controls | | | 5.1(j)(iii) | |
Transfer Taxes | | | 9.11 | |
TRA Holder Agreements | | | Recitals | |
Unaffiliated Stockholders | | | Recitals | |
Vested Units Exchanges | | | 1.1(a) | |
WARN Act | | | 5.1(p)(ii) | |
Written Consent Client | | | 6.19(a) | |
Stockholder
|
| |
Class A Owned
Shares |
| |
Class B Owned
Shares |
| |
Owned Units
|
| |||||||||
Trident FFP LP
|
| | | | — | | | | | | 8,250,165 | | | | | | 8,250,165 | | |
Trident VI, L.P.
|
| | | | 955,755 | | | | | | — | | | | | | — | | |
Trident VI Parallel Fund, L.P.
|
| | | | 6,701,039 | | | | | | — | | | | | | — | | |
Trident VI DE Parallel Fund, L.P.
|
| | | | 142,016 | | | | | | — | | | | | | — | | |
Stockholder
|
| |
Class A Rollover
Shares |
| |
Class B Rollover
Shares |
| |
Rollover Units
|
| |||||||||
Trident FFP LP
|
| | | | — | | | | | | 4,125,083 | | | | | | 4,125,083 | | |
Trident VI, L.P.
|
| | | | 477,877 | | | | | | — | | | | | | — | | |
Trident VI Parallel Fund, L.P.
|
| | | | 3,350,520 | | | | | | — | | | | | | — | | |
Trident VI DE Parallel Fund, L.P.
|
| | | | 71,008 | | | | | | — | | | | | | — | | |
| | | |
Jefferies LLC
520 Madison Avenue
New York, NY 10022 tel 212.284.2300 Jefferies.com |
|
Stockholder
|
| |
Class A
Owned Shares |
| |
Class B
Owned Shares |
| |
Owned Units
|
| |||||||||
Trident FFP LP
|
| | | | — | | | | | | 8,250,165 | | | | | | 8,250,165 | | |
Trident VI Parallel Fund, L.P.
|
| | | | 6,701,039 | | | | | | — | | | | | | — | | |
Trident VI, L.P.
|
| | | | 955,755 | | | | | | — | | | | | | — | | |
Trident VI DE Parallel Fund, L.P.
|
| | | | 142,016 | | | | | | — | | | | | | — | | |
Stockholder
|
| |
Class A
Rollover Shares |
| |
Class B
Rollover Shares |
| |
Rollover Units
|
| |||||||||
Trident FFP LP
|
| | | | — | | | | | | 4,125,083 | | | | | | 4,125,083 | | |
Trident VI, L.P.
|
| | | | 477,877 | | | | | | — | | | | | | — | | |
Trident VI Parallel Fund, L.P.
|
| | | | 3,350,520 | | | | | | — | | | | | | — | | |
Trident VI DE Parallel Fund, L.P.
|
| | | | 71,008 | | | | | | — | | | | | | — | | |
| | | | COMPANY: | | |||
| | | | FOCUS FINANCIAL PARTNERS INC. | | |||
| | | | By: | | |
Name: Ruediger Adolf
Title:
Chief Executive Officer
|
|
By: |
|
Name: |
|
Title: |
|