A 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 FCA license could be upgraded to any possible level required by the buyer, assuming any potential additional compliance, operational or capital requirements are met.
The firm is debt-free, litigation-free, with clean history track record (as you can verify in the FCA register) and there are not any open, pending or forthcoming financial, legal or regulatory issues.
The firm is a well-recognised name and that is one of the main assets. As a result of the strong position and brand awareness in the market, many valuable projects, transactions and opportunities do come to the firm regularly. This is the main evidence of the value of the brand and how a future partner can monetise the brand (in addition to the FCA license, which is mandatorily required to conduct regulated services/transactions in the UK and Europe).
The Directors have been refocusing their interest in other projects beyond the services provided by the firm, and as a result, the firm has produced limited revenues over the past few years. The valuation put on the firm (£850,000 for 80% equity) is primarily based on intangible assets such as our FCA license, brand, market position, JV/alliances and 16-years track record. Therefore the valuation is based mainly on intangible assets rather on Price/Earnings (P/E) or Price/Sales (P/S) valuation ratios.