• Angus Grierson, Managing Director at LGB Corporate Finance


• 25.10.2018 08:30 am
undisclosed

There is a clear logic to the deal right now because the small cap equity only broking model is tricky and particularly when, like now, we see lower volumes of capital raising on AIM and a fall-off in IPOs. Also MIFID II does not help. It completely changes the way in which the equity research business operates as it makes it more compliance intensive and restricts distribution.

"finnCap has tried to address this backdrop by extending its range of services before. The merger with Cavendish represents an interesting alternative approach. Cavendish is one of the leading UK boutique M&A houses and it will enable finnCap to offer private M&A as well as IPOs to corporate clients assessing exit options.

"The real key to the deal is whether they can successfully combine the two teams of brokers and M&A advisers respectively in order to effectively leverage the combined client base.