Cavendish taps top adviser to fend off foreign takeover interest

Cavendish, a boutique investment bank, has engaged Teneo, a leading corporate consultancy, to counteract hostile takeover attempts and a surge of consolidation in the British financial services sector. The advisors from Teneo will conduct an independent valuation, which will bolster confidence in Cavendish's position and facilitate informed decision-making in anticipation of any potential acquisition offers.

This move comes after Cavendish declined a bid from Smith & Williamson for its M&A advisory arm last year. Cavendish chair Lisa Gordon emphasized the importance of independent valuation for listed companies to be prepared for any situation. The financial services sector in London has experienced a wave of consolidation due to a decline in initial public offerings and capital markets activity.

Rivals such as Panmure Gordon and Liberum merged in 2024, while Numis was acquired by Deutsche Bank in 2023. Internationally, foreign investors have been acquiring British competitors at lower valuations compared to historical norms. In 2024, investment firm Schroders and FTSE 100 insurer Beazley were purchased by foreign entities, and fund managers W1M and Redwheel are reportedly considering sales.

Additionally, Evelyn Partners was sold to Natwest for £2.7 billion. Cavendish is also diversifying its focus away from its core dealmaking divisions to minimize reliance on cyclical investment banking revenue streams. The company plans to bolster its broking and private markets functions, viewing this diversification as a key strategic priority to support clients across market cycles.