Four business segments that offer different products and target diverse sets of customers Variable cost structure Limited balance sheet risk Aggressive acquisition strategy and limited track record of operating as an independent, integrated company Considerable debt burden and negative tangible equity Weak profitability The ratings on RCS Capital Corp. (RCS) reflect the firm's aggressive acquisition strategy and financial management, which will result in a considerable debt burden and negative tangible equity. While the acquisitions will enable RCS to quickly gain scale and become one of the largest independent brokers, Standard&Poor's Ratings Services negatively views its very limited track record operating as an independent combined firm. Additionally, we believe RCS faces significant integration risk combining several acquisitions simultaneously. The
