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On 23 September 2020, marketing group NAHL plc that it had received an approach by financial advisory firm, Frenkel Group plc regarding a possible all-share acquisition for the entire issued and to be issued share capital of NAHL. The announcement comes after Frenkel had purchased 2.8 million shares in NAHL, bringing its total holdings in the company to 6.1%.

The offer announcement saw NAHL’s shares close 18% higher.

Of the possible acquisition, Frenkel :

‘Frenkel Topping believes that there is a clear strategic, operational and financial rationale to combining these two complementary businesses that focus on providing excellent professional support to the victims of life changing injury, incident or clinical negligence. Frenkel Topping believes that a combination would be compelling to both sets of shareholders and to the broader stakeholders of both companies.

In addition to its current 6.1% holding, Frenkel currently has support regarding the acquisition from Harwood Capital LLP in respect of Harwood’s own shares and Oryx International Growth Fund Limited's entire holding representing approximately 13.32 % of NAHL’s issued share capital.

Frenkel recently announced that it had refocused its strategy away from acquiring independent financial adviser (IFA) firms after it had failed to find a suitable target after an ‘extensive search’ over the course of two years. The financial advisory firm instead confirmed that, earlier this year, the focus had been changed to consolidating the personal injury and clinical negligence markets. The firm stated the following regarding the change of approach in its :

‘We consider this approach to be a more effective and less risky method of increasing the Group's Assets Under Management (AUM) and will yield higher levels of organic growth than a traditional IFA firm.  Our successful fundraising of £13m will accelerate our vision of becoming the market leader in providing a full service offering to clients and claimants, particularly in the PI and Clin Neg marketplace. The opportunity in these two markets is significant; when combined, the PI and Clin Neg markets represent a total opportunity of c.£3.4 billion of AUM mandates per annum, in addition to the professional services required for such claims.’

In line with this approach, the firm recently acquired the company Forths, who provide specialist forensic accounting services, making Frenkel ‘the largest independent provider of financial expert witness reports to the claimant marketplace’.

NAHL, who provide marketing services for the legal sector, focusing on personal injury, critical care and residential property, have stated they are currently considering the offer with their advisers and have urged shareholders to take no further action at this time.

Market Tracker will continue to monitor this transaction as it develops.