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| | | | A-1 | | | |
| | | | B-1 | | | |
| | | | C-1 | | | |
| | | | D-1 | | | |
| | | | E-1 | | |
| | |
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 | | |
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) |
| |||||||||||||||
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 | | |
Year ($ in millions)
|
| |
Tax Basis
Intangible Amortization |
| |
Tax
Rate |
| |
Tax
Cash Benefit(1) |
| |||||||||
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 | | |
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)
|
| | | $ | [ ] | | |
Legal fees and expenses(2)
|
| | | $ | [ ] | | |
SEC filing fees
|
| | | $ | [ ] | | |
Printing, proxy solicitation, filing and mailing costs
|
| | | $ | [ ] | | |
Total
|
| | | $ | [ ] | | |
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. | | |
53
|
| | 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 | | |
52
|
| | Chief Financial Officer | |
J. Russell McGranahan | | |
52
|
| | 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 [ ], 2023)
|
| | | $ | [ ] | | | | | $ | [ ] | | | | | | — | | |
| | |
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 | | | | | | [ ]% | | | | | | 8,250,165 | | | | | | [ ]% | | | | | | 16,048,975 | | | | | | [ ]% | | |
Capital World Investors(3)
|
| | | | 5,451,302 | | | | | | [ ]% | | | | | | — | | | | | | [ ]% | | | | | | 5,451,302 | | | | | | [ ]% | | |
JPMorgan Chase & Co.(4)
|
| | | | 5,157,414 | | | | | | [ ]% | | | | | | — | | | | | | [ ]% | | | | | | 5,157,414 | | | | | | [ ]% | | |
Vanguard Group Inc.(5)
|
| | | | 5,085,477 | | | | | | [ ]% | | | | | | — | | | | | | [ ]% | | | | | | 5,085,477 | | | | | | [ ]% | | |
BlackRock, Inc.(6)
|
| | | | 3,775,028 | | | | | | [ ]% | | | | | | — | | | | | | [ ]% | | | | | | 3,775,028 | | | | | | [ ]% | | |
Directors and Named Executive Officers: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ruediger Adolf
|
| | | | — | | | | | | [ ]% | | | | | | 68,969 | | | | | | [ ]% | | | | | | 68,969 | | | | | | [ ]% | | |
Rajini Sundar Kodialam
|
| | | | — | | | | | | [ ]% | | | | | | 6,115 | | | | | | [ ]% | | | | | | 6,115 | | | | | | [ ]% | | |
J. Russell McGranahan
|
| | | | 1,000 | | | | | | [ ]% | | | | | | 4,134 | | | | | | [ ]% | | | | | | 5,134 | | | | | | [ ]% | | |
Leonard Chang
|
| | | | — | | | | | | [ ]% | | | | | | 4,161 | | | | | | [ ]% | | | | | | 4,161 | | | | | | [ ]% | | |
James Shanahan(7)
|
| | | | — | | | | | | [ ]% | | | | | | 3,845 | | | | | | [ ]% | | | | | | 3,845 | | | | | | [ ]% | | |
Joseph Feliciani, Jr.
|
| | | | — | | | | | | [ ]% | | | | | | 1,021 | | | | | | [ ]% | | | | | | 1,021 | | | | | | [ ]% | | |
Greg S. Morganroth, MD
|
| | | | — | | | | | | [ ]% | | | | | | 1,021 | | | | | | [ ]% | | | | | | 1,021 | | | | | | [ ]% | | |
James D. Carey(8)
|
| | | | — | | | | | | [ ]% | | | | | | — | | | | | | [ ]% | | | | | | — | | | | | | [ ]% | | |
George S. LeMieux
|
| | | | — | | | | | | [ ]% | | | | | | — | | | | | | [ ]% | | | | | | — | | | | | | [ ]% | | |
Fayez S. Muhtadie
|
| | | | — | | | | | | [ ]% | | | | | | — | | | | | | [ ]% | | | | | | — | | | | | | [ ]% | | |
Elizabeth R. Neuhoff
|
| | | | — | | | | | | [ ]% | | | | | | — | | | | | | [ ]% | | | | | | — | | | | | | [ ]% | | |
Directors and executive officers as a group
(11 individuals)* |
| | |
|
1,000
|
| | | | | [ ]% | | | | |
|
89,266
|
| | | | | [ ]% | | | | |
|
90,266
|
| | | | | [ ]% | | |
| | |
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| 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: |
|
Exhibit 107
Exhibit Fee Table
Calculation of Filing Fee Tables
SCHEDULE 14A
(Form Type)
Focus Financial Partners Inc.
(Name of Registrant as Specified in its Charter)
Table 1: Transaction Valuation
Proposed Maximum Aggregate Value of Transaction | Fee rate | Amount of Filing Fee | ||||||||||
Fees to Be Paid | $ | 4,626,660,354.29 | (1)(2) | 0.0001102 | $ | 509,857.97 | (2) | |||||
Fees Previously Paid | $ | 0 | $ | 0 | ||||||||
Total Transaction Valuation | $ | 4,626,660,354.29 | ||||||||||
Total Fees Due for Filing | $ | 509,857.97 | ||||||||||
Total Fees Previously Paid | $ | 0 | ||||||||||
Total Fee Offsets | $ | 0 | ||||||||||
Net Fee Due | $ | 509,857.97 |
(1) | Aggregate number of securities to which transaction applies: As of April 19, 2023, and taking into account adjustments triggered as a result of the transaction, the maximum number of shares of Class A Common Stock to which this transaction applies is estimated to be 88,694,980, which consists of the following securities that are entitled to receive the per share merger consideration noted in the following clauses: (a) 65,960,079 shares of Class A Common Stock entitled to receive the per share merger consideration of $53.00; (b) 20,147,537 shares of Class A Common Stock underlying outstanding Focus LLC Units that are vested and, with respect to Incentive Units, have a per share Hurdle Amount that is less than $53.00, which will be issued in the Vested Units Exchange and be entitled to receive the per share merger consideration of $53.00, (c) 1,197,151 shares of Class A Common Stock underlying outstanding Company Options that are vested and have a per share exercise price that is less than $53.00, which are entitled to receive the per share merger consideration of $53.00 minus any applicable exercise price, (d) a maximum of 820,820 shares of Class A Common Stock underlying outstanding Company Options that are unvested and have a per share exercise price that is less than $53.00, which will be converted into a contingent cash payment and may be entitled to receive the per share merger consideration of $53.00 minus any applicable exercise price (assuming maximum achievement of all applicable performance conditions), (e) a maximum of 252,424 shares of Class A Common Stock underlying outstanding Company RSUs, which will be converted into a contingent cash payment and may be entitled to receive the per share merger consideration of $53.00 (assuming maximum achievement of all applicable performance conditions) and (f) a maximum of 316,969 shares of Class A Common Stock underlying outstanding Focus LLC Units that are unvested and, with respect to Incentive Units, have a per share Hurdle Amount that is less than $53.00, which will be converted into a contingent cash payment and may be entitled to receive the per share merger consideration of $53.00 (assuming maximum achievement of all applicable performance conditions). |
(2) | Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): Estimated solely for the purposes of calculating the filing fee, as of April 19, 2023 and taking into account adjustments triggered as a result of the transaction, the underlying value of the transaction was calculated based on the sum of (a) the product of 65,960,079 shares of Class A Common Stock and the per share merger consideration of $53.00, (b) the product of 20,147,537 shares of Class A Common Stock underlying outstanding Focus LLC Units that are vested and, with respect to Incentive Units, have a per share Hurdle Amount that is less than $53.00, and the per share merger consideration of $53.00, (c) the product of 1,197,151 shares of Class A Common Stock underlying outstanding Company Options that are vested and have a per share exercise price that is less than $53.00 and approximately $19.73 (which is the difference between the per share merger consideration of $53.00 and the weighted average exercise price of the Company Options that are vested and have a per share exercise price that is less than $53.00), (d) the product of 820,820 shares of Class A Common Stock underlying Company Options that are unvested and have a per share exercise price that is less than $53.00, and approximately $11.16 (which is the difference between the per share merger consideration of $53.00 and the weighted average exercise price of the Company Options that are unvested and have a per share exercise price that is less than $53.00) (assuming the contingent cash payments in respect of the Company Options vest at maximum achievement of all applicable performance conditions), (e) the product of 252,424 shares of Class A Common Stock underlying outstanding Company RSUs and the per share merger consideration of $53.00 (assuming the contingent cash payments in respect of Company RSUs vest at maximum achievement of all applicable performance conditions) and (f) the product of 316,969 shares of Class A Common Stock underlying outstanding Focus LLC Units that are unvested and, with respect to Incentive Units, have a per share Hurdle Amount that is less than $53.00, and the per share merger consideration of $53.00 (assuming the contingent cash payments in respect of the Focus LLC Units vest at maximum achievement of all applicable performance conditions). In accordance with Section 14(g) of the Exchange Act, the filing fee was determined by multiplying the sum calculated in the preceding sentence by 0.0001102. |