Looking to buy
We act for buyers seeking to acquire an authorised firm. We identify firms that match the buyer's requirements, review each target's regulatory position and prepare the application for the regulator's approval.
At a glance
- For
- Groups, investors and firms seeking to acquire an authorised firm
- Firms
- Investment firms and MTFs · payment and e-money institutions · crypto-asset service providers · FX and CFD brokers · consumer credit firms
- Where
- United Kingdom · European Union · United Arab Emirates
- Related
- Firms for sale
Change of control
Acquisition or new application
Acquiring an authorised firm can be an alternative to applying for a new authorisation. The acquisition requires the regulator's prior approval, and the regulator assesses the buyer and its plans for the firm. The firm's existing permissions, passports, banking and safeguarding arrangements and regulatory record pass to the buyer with it.
Before a transaction proceeds, we assess whether the variation of permission or remediation needed after completion would make a new application the more appropriate route.
How the search proceeds
Requirements
The buyer sets out the permissions, jurisdiction, passporting, client base and business it requires, and its plans for the firm after completion.
Search
We match the requirements against firms whose owners have registered with us, and describe suitable firms to the buyer without naming them.
Introduction
With the owner's agreement, and once the buyer has signed a confidentiality agreement, we identify the firm and put the parties in contact.
Regulatory due diligence
We review the target's permissions, regulatory record, open matters with the regulator, capital position, policies, financial crime controls and senior management arrangements.
Change in control
We prepare the change in control submission for each person in the chain of control, and approved-person applications for incoming senior managers, through to the regulator's decision.
What the regulator will assess
The buyer
Each person in the chain of control, up to the ultimate beneficial owners, including their reputation, experience and other interests.
Source of funds
The source of funds for the acquisition and the source of the buyer's wealth, supported by documentary evidence.
Plans for the firm
Changes to the business model, management and capital, and the firm's continued compliance with the conditions for authorisation.
Scope
We work on transactions in which the buyer acquires control of the firm: 50 per cent or more of its voting shares, or day-to-day control of its business. The price and the sale and purchase agreement are agreed between the parties and their lawyers and corporate finance advisers.