M&A · Financials · Investment Advice
Clayton, Dubilier & Rice and Stone Point Capital to acquire Focus Financial Partners Inc.
Announced Feb 27, 2023 · Closed Aug 31, 2023
Deal value$7.00B
Premium48.0%To unaffected price
EV / Adj. EBITDA—
ConsiderationAll cash$53.00 per share
Transaction
- Acquirer
- Clayton, Dubilier & Rice and Stone Point Capital
- Target
- Focus Financial Partners Inc. (FOCS)
- Buyer type
- Private equity
- Offer price per share
- $53.00
- Enterprise value
- —
- Status
- Closed Aug 31, 2023
Deal protections
- Break fee (target pays)
- $150M · 2.1%
- Reverse fee (buyer pays)
- —
- Go-shop
- Go-shop
- Financing
- Committed · RBC Capital Markets, Truist Securities, MUFG, BMO Capital Markets, Jefferies
Advisors
- To the acquirer
- Moelis, RBC Capital Markets, Truist Securities, BofA Securities, BMO Capital Markets, Citizens, MUFG
- To the target
- Jefferies, Goldman Sachs
- Jefferies fee
- $8.0M
Sector context · Financials
- Comparable deals
- 87 in the prior 24 months
- Premium
- 48.0% vs. 29.4% sector median
- EV / Adj. EBITDA
- Sector median 21.7x
- Break fee
- 2.1% vs. 3.6% sector median
Timeline
- AnnouncedFeb 27, 2023
- Proxy filedApr 25, 2023
- Definitive proxyJun 12, 2023
- Shareholder voteJul 14, 2023
- ClosedAug 31, 2023
Valuation · fairness opinions
Other analysisGoldman Sachs$40.76$63.12
Future share priceGoldman Sachs$36.02$59.09
Premiums paidGoldman Sachs$44.95$56.49
52-week trading rangeGoldman Sachs$30.65$54.20
Analyst price targetsGoldman Sachs$41.00$52.00
Trading comparablesJefferies$42.09$55.38
Precedent transactionsJefferies$37.60$72.14
Discounted cash flowJefferies$45.85$60.16
Analyst price targetsJefferies$35.00$55.00
Offer $53.00
Implied value per Focus Financial Partners Inc. share by analysis, from Goldman Sachs and Jefferies · DCF discount rate 9%–11.25%.