Moulton to strike Finncap merger with Cavendish
City broker Finncap is gearing up for a merger with Cavendish Corporate Finance later this week, according to Sky News reports this evening.
Veteran venture capitalist Jon Moulton, who bought Finncap eight years ago, is rumoured to be setting up the deal that would combine the two businesses, with plans to list the company on London’s junior Alternative Investment Market (Aim).
Cavendish, which advises on the sell side of mergers and acquisition, was founded by the Conservative Party’s former treasurer Lord Leigh 30 years ago.
The deal to establish an advisory and capital markets business would value the firm at £45m.
The news comes amid growing efforts to consolidate within the market for servicing small-cap firms, with government changes to the way brokers can charge for research hitting mid-sized companies.
Sources told Sky the deal would be “a win-win” for the parties and their employees.