Focus Financial expects to more than double its revenue over the next 4 years

What do you want to know

  • Focus Financial expects to grow its revenue from $1.8 billion in 2021 to around $4 billion in 2025.
  • To achieve its growth targets, Focus will need to increase its number of partner companies by around 50%, said CEO Rudy Adolf.
  • The $161.9 million the company raised in December gives it additional working capital flexibility to pursue global M&A opportunities.

Focus Financial Partners has set ambitious financial targets for 2025, including doubling its annual revenue from $1.8 billion for 2021 announced Thursday to around $4 billion in 2025, according to Rudy Adolf, CEO, President and founder of the company.

The company, meanwhile, plans to continue its mergers and acquisitions, which will play a key role in this growth.

“We have made substantial progress in evolving our business, with the COVID crisis adding to the stability and resilience of our business model,” Adolf told analysts on an earnings call Thursday. “And we’ve increased our financial targets for 2025 to reflect that.”

In addition to the revenue target, Adolf said his company plans to report adjusted earnings before interest, taxes, depreciation and amortization of $1.1 billion and an adjusted EBITDA margin of 28% in 2025, ” supported by a future partnership of around 125 companies”.

To achieve these goals in “about four years, we need to more than double the size of our revenue and adjusted EBITDA, while increasing the number of business partners we have by about 50%,” he said. declared.

“We believe these targets are aggressive, but achievable,” he told analysts. Focus Financial continues “to attract some of the most qualified companies in the industry, and we ended 2021 with 84 partner companies in four countries”, he said.

The company enters 2022 with “excellent momentum, continuing the strong pace of activity that we experienced last year [and is] is working on a substantial pipeline in the US, Australia, Canada and the UK, and plans to expand to other countries,” he revealed.

Sallie R. Loera