LONDON, UK: Frenkel Topping has acquired the entire issued share capital of Cardinal Management Limited.
The total maximum possible consideration for the acquisition is £10.0 million in cash, of which an initial £5.0m (which is subject to adjustment following a completion accounts process) will be paid on completion.
The additional consideration of up to £5.0m may become due to the sellers of Cardinal on an earn-out basis linked to certain challenging financial performance targets relating to future growth and profitability of Cardinal between completion and 31 December 2025. Further details on the financial terms of the Acquisition are set out below.
Cardinal Management Limited works in close partnership with a number of key NHS Major Trauma Centres (“MTCs”) to provide a Major Trauma Signposting Partnership (MTSP) support service.
The Acquisition is 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 the Personal Injury (PI) and Clinical Negligence (CN) space.
Cardinal fits perfectly alongside the Group’s recent acquisitions of Forths Associates, A&M Bacon, Partners in Costs and Bidwell Henderson and allows the consolidation of the space further, positioning Frenkel Topping as a market leader in its sector.
Cardinal Management Limited is the sole commercial organisation operating in its space and has a 5-year track record of contracts with the NHS with a 100% contract renewal rate.
Cardinal Management Limited is also in high demand from PI legal providers seeking quality multi-track cases and provides a clear opportunity to expand the Major Trauma Signposting Partnership (as further explained below) into additional Major Trauma Centres within the NHS.
Through its core business, Frenkel Topping Limited, it supports litigators pre-settlement in achieving maximum damages, by providing expert witness services, and post-settlement to achieve the best long-term financial outcomes for clients after injury.
The Acquisition provides a clear and direct link to claimants, and their professional representatives, at the earliest stage possible after injury or illness, introducing the portfolio of Frenkel Topping Group services in a relevant and timely way to its clients in the PI and CN litigation space as well as claimants themselves. It is also expected that the Acquisition will drive future growth in the Group’s Assets Under Management as successful claims and cases come to settlement.
At each of the MTSP sites, Cardinal has selected a legal panel which comprises law firms who provide the highest quality of care and service to patients, providing significant opportunity for the Group to further strengthen its relationships with PI and CN departments within law firms nationally.
Cardinal Management Ltd was established in 2015 by Andrew Pemberton (Managing Director and majority shareholder). It is an independent organisation providing trauma patients and their families with much needed help and support whilst in hospital. The core of Cardinal’s work is within the NHS, where Cardinal is integral to helping Major Trauma Centres improve levels of care and long-term outcomes for patients by facilitating early access to welfare, legal, rehabilitation and financial support.
Cardinal currently has a presence in 7 NHS Major Trauma Centres, of which there are 27 across the country, giving significant scope to grow and expand.
The Major Trauma Signposting Partnership is a scheme initially developed by Cardinal and St George’s University Hospitals NHS Foundation Trust. MTSP went live in January 2016 with the aim of testing the impact of early advice and guidance from Citizens Advice (formally the “CAB”) and Rehabilitation Advisers on the quality of care and longer-term outcomes for patients, the NHS and our wider society, which has been adopted by 7 other MTCs.
The MTSP provides advice on a range of issues including employment, finance, education, housing, and compensation. A Cardinal-employed Major Trauma Advisor (MTA) works within the MTC to meet with patients at their bedside to provide free advice and support to patients and their families.
Cardinal has a strong team of 19 people, 14 directly employed and all led by Andrew Pemberton, who will remain in place as Managing Director following completion of the Acquisition.
As set out in the Company’s strategy, the focus is to ensure the Company has as many touch points as possible in the PI and CN space. The Acquisition provides this on the basis that the Company will have an ability to help clients and patients as soon as they have suffered severe trauma and serious injury when they arrive at hospitals and can assist them at the initial stages of assessment with a view to ensuring the best possible outcome, care and financial compensation. This drives a number of key revenue opportunities for the Company as the Acquisition is expected to link into the wider buy and build strategy and the Company’s previous acquisitions and existing product offering and ultimately driving growth in AUM.
The Acquisition is expected to be immediately earnings enhancing contributing to the FY 2022 financial year outturn.
Richard Fraser, Chief Executive Officer of Frenkel Topping Group, said: “The acquisition of Cardinal fits exactly into our strategy of acquiring high-quality businesses in the personal injury and clinical negligence market which provide established opportunities for us to extend our reach into the sector and expand our client base.
The timely support provided by Cardinal inside hospitals immediately after injury is absolutely crucial for injured parties to receive the best possible outcomes and we are delighted to be working with Andrew to grow that level of support to more of the Major Trauma Centres across the country.
Andrew cares deeply about supporting patients and NHS teams inside trauma centres and I have been greatly impressed by his approach to developing the MTSPs. I very much look forward to welcoming Andrew and Cardinal into the enlarged business and continuing the outstanding work they do.”
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