Frenkel Topping enters costs market with £9m double acquisition

Glynn: Extremely excited

Financial adviser Frenkel Topping has entered the costs market by acquiring Partners in Costs (PIC) and A&M Bacon for £9m.

It said the deals were in line with its aim to have “as many touch points as possible in the personal injury/clinical negligence space in order to capture as many revenue opportunities as possible”.

The two costs firms, which are linked, are both based in Doncaster, while PIC also has offices in Norwich, Newcastle and London. PIC has 52 staff and A&M Bacon 12.

Frenkel specialises in managing and investing damages awarded to seriously injured people. Only last month, it called off its reverse takeover of fellow AIM-listed company NAHL, the company that owns National Accident Helpline.

It told the stock exchange this morning: “The acquisitions are firmly in line with the company’s strategy to pursue quality opportunities in, and to drive consolidation of, the pre-settlement professional services marketplace in personal injury and clinical negligence. Both PIC and A&M Bacon are leading specialist costs firms.

“In addition to certain cost synergies, the claimants these two companies provide services to, will naturally benefit from the additional services that Frenkel Topping offer, such as welfare benefits assessments, trust advice in conjunction with forensic accounting and expert witness services throughout the entire timespan of a claim.”

Frenkel Topping said that the deals would “enhance” its chances of winning the AUM [assets under management] mandate following a successful claim.

In the last financial year, PIC had revenues of £3.6m, with £734,000 profit before tax and £2.6m in net assets, while A&M Bacon’s revenues were £1.1m, with profit of £191,000 and £707,000 of net assets.

PIC co-founder and managing director Reuben Glynn is also the owner of A&M Bacon. He will continue as chief executive of A&M Bacon, while PIC owner and co-founder Teresa Aitken will remain its chief executive.

Frenkel Topping is paying £5m up front plus £900,000 worth of shares, subject to two-year lock-ins. A further £3.1m is payable in cash in two tranches on 31 January 2022 and 2023.

Mr Glynn: “I am extremely excited to join the Frenkel Topping Group. A&M Bacon have become the leading costs specialist in local government and Court of Protection.

“Unfortunately, last year we lost our founder Michael Bacon after a short illness. Michael was a true legal costs legend. Michael would have wholeheartedly supported this opportunity.”

Ms Aitken added that the deal would enable injured clients to receive “a seamless service”.

    Readers Comments

  • Mr Smith says:

    No wonder the MD of PIC has such a large smile on his face. How any company let alone a specialist accountancy firm like frenkel topping can value a company at 13 times its yearly profit is beyond me. This is simply unbelieveable!

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