2024: A Year of Relationship Building
From Rick Thomas, CEO
The past year looked surprisingly similar to the apprehensive market of 2023, but there were still deals to be made. Although the market was weighed down by high interest rates and private equity firms hesitant about extending themselves, buyers did open up a bit on dealmaking, and sellers continued to look for the exit—but still at a premium price.
It was a bit of strange year……we had lots of calls during Q2 and Q3 from peers and buyers in the market lamenting that they weren’t seeing many opportunities. Meanwhile we were quite busy with getting transactions closed and signing up new mandates. Some of this was good fortune, but our referral partners and our commitment to industry expertise were the real difference makers for us in 2024.
Relying on our strengths, FOCUS leveraged its commitment to trust, deep industry knowledge and ability to find the unobvious buyer to structure solid deals for their clients despite uncertain market conditions over the last few years.
The challenges of 2024 will remain looking into 2025, but there is a strong appetite for M&A in the year to come. FOCUS’s continued effort to build trusted relationships with advisors, clients and partners will be essential in navigating what lies ahead.
“The technology services market is thriving, with strong demand for high-value acquisitions, particularly in sectors like Managed Service Providers (MSPs),” says Stan Gowisnock, Chief Strategic Advisor and Technology Services Team Leader at FOCUS Investment Banking. “Owners of tech services firms are frequently approached by buyers eager to invest. At FOCUS, we show owners why having experienced representation matters—we bring direct value to the deal and often help improve the initial offer.”
“Buyers are expecting a higher level of sophistication from sellers, and it’s our job at FOCUS to identify potential gaps in our clients’ operations, financials, and growth strategy. We help them strengthen their position and navigate the complexities of due diligence to ensure the best possible outcome.”
Uncertainty Continues in 2025
New administration and fluctuating interest rates
This year has already begun by looking a lot like the past two years, but there is certainly a positive increase in sentiment among M&A professionals and 2025 is expected to deliver a more robust transaction environment. While FOCUS signed up more engagements in 2024 than ever before, there is still plenty of economic uncertainty that could play into the year ahead.
Even though the election is behind us and business owners feel strong about M&A, there is still quite a bit of uncertainty about the goals and tactics of the new administration. It’s likely buyers will wait to see what priorities unfold in the first few months and what the economic landscape will be before engaging in a lot of M&A activity. Tax cuts, inflation, border security and tariffs will all play a role in what the landscape will look like over the next four years.
Interest rates were relatively high for the entire year, and forecasts indicate they are not going down further anytime soon. This means many of the same challenges from the last three years will continue, including hesitant buyers that use debt to finance deals and sellers not willing to sell at a discount.
Opportunity and Growth in the Middle Market
Effective December 31, 2024, FOCUS Investment Banking (“the Company”) and FOCUS Capital Partners (“FCP”) combined ownership and operations to provide best in class investment banking services. With closer operational integration and a shared vision for growth, the new structure is the natural next step in growing the Company’s international offerings in M&A, debt advisory, and equity raising.
“With this strategic partnership, FOCUS now offers our clients seamless access to expertise and opportunities across both Europe and North America,” said Robert Adams, President of FCP and head of the Company’s European operations.
Looking Forward
As we look back on 2024, FOCUS is proud of the success and growth we have achieved in a tough economic environment. While our peers struggled to gain momentum, the trust and efforts of our people, clients and partners propelled us to the forefront. We look forward to another successful year.
To read our full 2024 Year in Review, please click here.
Prior to joining FOCUS, Rick served as Vice President at VSI, a boutique investment banking firm located in Washington, DC. He led M&A activities for publicly and privately held companies in the middle market, several of which have annual revenues in excess of $1 Billion. Rick’s clients were involved in a wide array of transactions; from acquisitions and divestitures to minority interests and strategic partnerships.
In addition to his experience with clients, Rick has lectured to hundreds of senior executives on M&A best practices and has been an adjunct faculty member for The George Washington University School of Business and Public Management. His M&A teachings focused on coaching companies and senior executives in how to build an acquisition team, create a winning strategy, identify and engage not-for-sale companies, streamline company valuation, perform value added due diligence and techniques for financial modeling. Rick has also served as a U.S. representative to South African companies in the capacity of advisor and consultant on business linkages, partnering and financing for small and medium businesses.
He holds an MBA in International Business and Finance from The George Washington University. He earned a BS in Engineering from Michigan State University. After completing an undergraduate program in engineering, Rick spent several years working as a manufacturing engineer and supervisor for General Motors. In this role he was responsible for the quality and productivity of manufacturing teams. In addition to being recognized as an outstanding team leader and team builder, Rick implemented a number of process improvements which enhanced product quality and efficiency at numerous GM production facilities.
