Independent asset manager and financial adviser Frenkel Topping has announced a formal sale process in order to 'accelerate growth' and 'maximise shareholder value'.
The AIM-listed adviser said after two years of ‘considerable progress' including the launch of its specialist investment product range and discretionary fund management arm, its board felt the group could benefit from merging with a larger, strategic partner.
In a statement to investors on 3 April Frenkel Topping said: "In order for the board to investigate this strategic option sufficiently with prospective partners who may be able to accelerate the growth of the business and help fulfil its considerable potential, it believes it necessary for the group to enter into a formal sale process."
The IFA, which specialises in advising clients on personal injury protection payouts, has not yet been approached by any potential buyers.
It had a total of £745m assets under management (AUM) on 31 December 2016, and expects to gain £100m AUM in 2017, and a further £180m in 2018.
Additionally, the IFA said it expects last month's regulatory changes to the Ogden rate, a discount rate based on life expectancy, which was cut from 2.5% to -0.75% to give the group a further boost to AUM.
Executive chairman Jason Granite said: "Since 2015, the management and board have successfully implemented a range of strategic initiatives transforming Frenkel Topping both in terms of enhancing our client service proposition and developing a highly scalable platform to drive growth in AUM and profitability.
"Whilst the competitive positioning and potential of the firm has been further enhanced by the Ogden discount rate review, the board recognises that a strategic partner has the capability to maximise the group's potential, to the benefit of our clients, shareholders and employees."
Frenkel Topping expects to invite proposals from prospective buyers during May, after which it will publish further details on the sale process. Bidders will not have to be publicly identified.
'Can help iron out rough edges'
How do mergers affect investors?
Our video series continues
Three advisers have their say…
Regulator's data bulletin