A small London-based FCA (Financial Conduct Authority) Regulated Investment Bank is now for sale. The firm has established a strong brand with a good track record.
The firm has also a number of seats in several stock exchanges and it has created several alliances with legal and accounting and has launched its own branded legal and accounting services in the UK.
However, the firm is looking for an investor and/or buyer to take it to the next level. The valuation of the firm is based mainly on its intangible assets (as its board has been refocusing on other strategic projects and the Board has not operated the advisory side for a couple of years). Therefore, the expected valuation will not be connected to any valuation metric or ratio (like P/E or P/S).
An alternative option for investors who are still interested to gain the FCA regulated status and the FCA license in the UK/Europe but cannot or are not willing to purchase the firm purely on intangible assets is to consider the "appointed representative" route.
This Investment Bank is also considering "lending" its FCA license to a new foreign legal entity interested to operate in the UK/Europe as a FCA authorised and approved Investment Bank under the figure of the "appointed representative". This is an unique regulatory route available in the UK/Europe which will allow non-FCA firm to become FCA approved by borrowing the license of the FCA-approved entity.

Posted Jul 3, 2014

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