| | |
Per Share
|
| |
Total
|
| ||||||
Public Offering Price
|
| | | $ | | | | | $ | | | ||
Underwriting Discount
|
| | | $ | | | | | $ | | | ||
Proceeds to Focus Financial Partners Inc. (before expenses)
|
| | | $ | | | | | $ | | | ||
Proceeds to Selling Stockholders (before expenses)
|
| | | $ | | | | | $ | | | |
| | |
Page
|
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| | | | S-10 | | | |
| | | | S-11 | | | |
| | | | S-12 | | | |
| | | | S-16 | | | |
| | | | S-18 | | | |
| | | | S-27 | | | |
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| | | | 22 | | | |
| | | | 22 | | | |
| | | | 23 | | |
| | |
Shares Beneficially Owned Prior to the Offering
|
| |
Number of
Class A Common Stock Offered(2) |
| |
Shares Beneficially Owned After the Offering
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name of Selling
Stockholder |
| |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Combined
Voting Power(1) |
| |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Combined
Voting Power(1) |
| ||||||||||||||||||||||||||||||||||||||||||||||||
|
Number
|
| |
%
|
| |
Number
|
| |
%
|
| |
%
|
| |
Number
|
| |
Number
|
| |
%
|
| |
Number
|
| |
%
|
| |
%
|
| |||||||||||||||||||||||||||||||||||
Entities Affiliated with KKR(3)
|
| | | | 3,490,200 | | | | | | 6.2% | | | | | | 3,654,044 | | | | | | 22.1% | | | | | | 9.9% | | | | | | 7,144,244 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | —% | | |
| | |
Before Offering
|
| |
After Offering
|
| ||||||||||||||||||
Hurdle Rates
|
| |
Number
Outstanding |
| |
Vested
Incentive Units |
| |
Number
Outstanding |
| |
Vested
Incentive Units |
| ||||||||||||
$1.42
|
| | | | 421 | | | | | | 421 | | | | | | 421 | | | | | | 421 | | |
5.50
|
| | | | 798 | | | | | | 798 | | | | | | 798 | | | | | | 798 | | |
6.00
|
| | | | 386 | | | | | | 386 | | | | | | 386 | | | | | | 386 | | |
7.00
|
| | | | 1,081 | | | | | | 1,081 | | | | | | 1,081 | | | | | | 1,081 | | |
9.00
|
| | | | 1,323,708 | | | | | | 1,323,708 | | | | | | 1,323,708 | | | | | | 1,323,708 | | |
11.00
|
| | | | 829,621 | | | | | | 829,621 | | | | | | 815,443 | | | | | | 815,443 | | |
12.00
|
| | | | 520,000 | | | | | | 520,000 | | | | | | 520,000 | | | | | | 520,000 | | |
13.00
|
| | | | 548,750 | | | | | | 548,750 | | | | | | 540,000 | | | | | | 540,000 | | |
14.00
|
| | | | 17,848 | | | | | | 17,848 | | | | | | 10,098 | | | | | | 10,098 | | |
16.00
|
| | | | 45,191 | | | | | | 45,191 | | | | | | 45,191 | | | | | | 45,191 | | |
17.00
|
| | | | 20,000 | | | | | | 20,000 | | | | | | 20,000 | | | | | | 20,000 | | |
19.00
|
| | | | 549,643 | | | | | | 549,643 | | | | | | 529,100 | | | | | | 529,100 | | |
21.00
|
| | | | 3,410,348 | | | | | | 2,806,578 | | | | | | 3,377,716 | | | | | | 2,773,946 | | |
22.00
|
| | | | 836,417 | | | | | | 539,313 | | | | | | 836,417 | | | | | | 539,313 | | |
23.00
|
| | | | 524,828 | | | | | | 393,621 | | | | | | 524,828 | | | | | | 393,621 | | |
26.26
|
| | | | 18,750 | | | | | | — | | | | | | 18,750 | | | | | | — | | |
27.00
|
| | | | 29,484 | | | | | | 22,113 | | | | | | 21,626 | | | | | | 14,255 | | |
27.90
|
| | | | 1,931,297 | | | | | | 430,806 | | | | | | 1,929,424 | | | | | | 428,933 | | |
28.50
|
| | | | 1,487,130 | | | | | | 709,585 | | | | | | 1,440,230 | | | | | | 662,685 | | |
30.48
|
| | | | 30,000 | | | | | | — | | | | | | 30,000 | | | | | | — | | |
33.00
|
| | | | 3,617,500 | | | | | | 7,500 | | | | | | 3,617,500 | | | | | | 7,500 | | |
36.64
|
| | | | 30,000 | | | | | | 20,000 | | | | | | 30,000 | | | | | | 20,000 | | |
43.50
|
| | | | 30,000 | | | | | | — | | | | | | 30,000 | | | | | | — | | |
44.71
|
| | | | 806,324 | | | | | | — | | | | | | 806,324 | | | | | | — | | |
Total
|
| | | | 16,609,525 | | | | | | 8,786,963 | | | | | | 16,469,041 | | | | | | 8,646,479 | | |
| | |
Per Share
|
| |||
Public offering price
|
| | | $ | | | |
Underwriting discount
|
| | | $ | | | |
Proceeds, before expenses, to us
|
| | | $ | | | |
Proceeds, before expenses, to the selling stockholders
|
| | | $ | | | |
| | | | | 1 | | | |
| | | | | 2 | | | |
| | | | | 3 | | | |
| | | | | 4 | | | |
| | | | | 5 | | | |
| | | | | 7 | | | |
| | | | | 8 | | | |
| | | | | 9 | | | |
| | | | | 15 | | | |
| | | | | 16 | | | |
| | | | | 17 | | | |
| | | | | 18 | | | |
| | | | | 19 | | | |
| | | | | 20 | | | |
| | | | | 22 | | | |
| | | | | 22 | | | |
| | | | | 23 | | |
| | |
Focus
Financial Partners Inc. Historical |
| |
Pro Forma
Adjustments (IPO and Reorganization Transactions) |
| |
Pro Forma
Adjustments Note |
| |
Focus
Financial Partners Inc. Pro Forma |
| |
Loring Ward
Holdings Inc. and subsidiaries |
| |
Pro Forma
Adjustments (Acquisition of Loring Ward) |
| |
Pro Forma
Adjustments Note |
| |
Focus
Financial Partners Inc. Combined Pro Forma |
| ||||||||||||||||||
REVENUES: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Wealth management fees
|
| | | $ | 853,033 | | | | | $ | — | | | | | | | | $ | 853,033 | | | | | $ | 42,876 | | | | | $ | — | | | | | | | | $ | 895,909 | | |
Service and administrative fees
|
| | | | | | | | | | | | | | | | | | | | | | | | | 10,406 | | | | | | (10,406) | | | |
(d)
|
| | | | | | |
Brokerage commissions
|
| | | | | | | | | | | | | | | | | | | | | | | | | 15 | | | | | | (15) | | | |
(d)
|
| | | | | | |
Other
|
| | | | 57,847 | | | | | | | | | | | | | | | 57,847 | | | | | | | | | | | | 10,421 | | | |
(d)
|
| | | | 68,268 | | |
Total revenues
|
| | | | 910,880 | | | | | | — | | | | | | | | | 910,880 | | | | | | 53,297 | | | | | | — | | | | | | | | | 964,177 | | |
OPERATING EXPENSES:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Compensation and related expenses
|
| | | | 358,084 | | | | | | | | | | | | | | | 358,084 | | | | | | 24,348 | | | | | | (3,194) | | | |
(e)(g)
|
| | | | 379,238 | | |
Management fees
|
| | | | 232,703 | | | | | | | | | | | | | | | 232,703 | | | | | | | | | | | | 4,052 | | | |
(e)
|
| | | | 236,755 | | |
Selling, general and administrative
|
| | | | 170,270 | | | | | | | | | | | | | | | 170,270 | | | | | | 20,396 | | | | | | (1,601) | | | |
(f)(g)
|
| | | | 189,065 | | |
Intangible amortization
|
| | | | 90,381 | | | | | | | | | | | | | | | 90,381 | | | | | | 49 | | | | | | 760 | | | |
(h)
|
| | | | 91,190 | | |
Non-cash changes in fair value of estimated contingent
consideration |
| | | | 6,638 | | | | | | | | | | | | | | | 6,638 | | | | | | | | | | | | | | | | | | | | | 6,638 | | |
Depreciation and other amortization
|
| | | | 8,370 | | | | | | | | | | | | | | | 8,370 | | | | | | 1,112 | | | | | | | | | | | | | | | 9,482 | | |
Total operating expenses
|
| | | | 866,446 | | | | | | | | | | | | | | | 866,446 | | | | | | 45,905 | | | | | | 17 | | | | | | | | | 912,368 | | |
INCOME (LOSS) FROM OPERATIONS
|
| | | | 44,434 | | | | | | | | | | | | | | | 44,434 | | | | | | 7,392 | | | | | | (17) | | | | | | | | | 51,809 | | |
OTHER INCOME (EXPENSE):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and dividend income
|
| | | | 1,266 | | | | | | | | | | | | | | | 1,266 | | | | | | 207 | | | | | | | | | | | | | | | 1,473 | | |
Interest expense
|
| | | | (56,448) | | | | | | 16,016 | | | |
(a)
|
| | | | (40,432) | | | | | | (1,884) | | | | | | 1,884 | | | |
(i)
|
| | | | (40,432) | | |
Capital gains
|
| | | | | | | | | | | | | | | | | | | | | | | | | 9 | | | | | | (9) | | | |
(d)
|
| | | | | | |
Amortization of debt financing costs
|
| | | | (3,498) | | | | | | (26) | | | |
(a)
|
| | | | (3,524) | | | | | | | | | | | | | | | | | | | | | (3,524) | | |
Gain on sale of investment
|
| | | | 5,509 | | | | | | | | | | | | | | | 5,509 | | | | | | | | | | | | | | | | | | | | | 5,509 | | |
Loss on extinguishment of
borrowings |
| | | | (21,071) | | | | | | | | | | | | | | | (21,071) | | | | | | | | | | | | | | | | | | | | | (21,071) | | |
Other (expense) income – net
|
| | | | (2,350) | | | | | | | | | | | | | | | (2,350) | | | | | | | | | | | | 9 | | | |
(d)
|
| | | | (2,341) | | |
Income from equity method investments
|
| | | | 521 | | | | | | | | | | | | | | | 521 | | | | | | | | | | | | | | | | | | | | | 521 | | |
Total other expense – net
|
| | | | (76,071) | | | | | | 15,990 | | | | | | | | | (60,081) | | | | | | (1,668) | | | | | | 1,884 | | | | | | | | | (59,865) | | |
INCOME(LOSS) BEFORE INCOME TAX
|
| | | | (31,637) | | | | | | 15,990 | | | | | | | | | (15,647) | | | | | | 5,724 | | | | | | 1,867 | | | | | | | | | (8,056) | | |
INCOME TAX EXPENSE
(BENEFIT) |
| | | | 9,450 | | | | | | 4,517 | | | |
(b)
|
| | | | 13,967 | | | | | | (1,427) | | | | | | 2,717 | | | |
(j)
|
| | | | 15,257 | | |
Net income (loss)
|
| | | | (41,087) | | | | | | 11,473 | | | | | | | | | (29,614) | | | | | | 7,151 | | | | | | (850) | | | | | | | | | (23,313) | | |
Net (income) loss attributable to non-controlling interests
|
| | | | 40,497 | | | | | | (6,028) | | | |
(c)
|
| | | | 34,469 | | | | | | | | | | | | (2,862) | | | |
(c)
|
| | | | 31,607 | | |
NET INCOME (LOSS) ATTRIBUTABLE TO FOCUS FINANCIAL PARTNERS INC.
|
| | | $ | (590) | | | | | $ | 5,445 | | | | | | | | $ | 4,855 | | | | | $ | 7,151 | | | | | $ | (3,712) | | | | | | | | $ | 8,294 | | |
Net income (loss) per share of Class A common stock:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | (0.01) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 0.18 | | |
Diluted
|
| | | $ | (0.01) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 0.18 | | |
Weighted average shares of Class A common stock outstanding:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 43,122,782 | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,964,897 | | | |
(k)
|
| | | | 46,087,679 | | |
Diluted
|
| | | | 43,122,782 | | | | | | | | | | | | | | | | | | | | | | | | | | | 3,067,446 | | | |
(k)
|
| | | | 46,190,228 | | |