Frenkel Topping's website
Salford-based financial adviser and professional services firm Frenkel Topping, has accepted a £65.8m takeover offer from private equity firm Harwood.
The bid from Irwell Financial Services Bidco Ltd, which is managed by Harwood Private Equity, will see shareholders will receive 50 pence cash and one contingent value right for each scheme share held, or an alternative offer of 10p in cash, plus shares in the newly-created company.
This values Frenkel at £65.8m, a 12.9% premium to the September 29 closing price of 45.5 pence.
The acquisition will be completed via a court-sanctioned scheme of arrangement.
The deal remains subject to court and regulatory approval.
Frenkel Topping announced it had accepted the bid from Harwood alongside the release of its interim results for the six months ended 30 June.
The period saw revenue increase by 17% to £20.9m (H1 2024: £17.9m). Recurring revenue great by 15% to £13.4m.
Fund under management for the adviser grew 12% to £1.6bn, with £1.08m under a discretionary mandate.
Client retention within its IFA business remained strong at 99%.
Gross profit also rose by 10% to £7.6m.
The Harwood bid for Frenkel was first announced on 2 June.
Last month the deadline for Harwood to make a firm intention to make an offer was extended to 5pm on 25 August.
Frenkel Topping was established in 1979 as a specialist forensic accountants by John Frenkel and Mike Topping. The company was dedicated to servicing lawyers dealing with large personal injury and clinical negligence claims. It floated on AIM in 2004.
It now has a number of businesses including Cardinal Management which was established in 2015 to provide trauma support and direction. In 2016, Frenkel Topping Group launched its discretionary fund management service, Ascencia and in 2018 it created wealth manager Obiter.
In recent years it has been busy on the acquisition trail, beginning with Manchester and Leeds-based forensic accountancy Forth’s in 2020. In 2021 it acquired civil and commercial litigation costs consultants A&M Bacon and Partners in Costs (PIC), a costs law specialist, both based in Doncaster.
