A business restructuring expert who has been involved in some of Scotland’s most high-profile rescue deals in recent years is in line for a multi-million pound paper windfall after flotation plans were confirmed by a corporate advisory firm.
FRP Advisory, which has offices across Scotland, today announced plans to float on AIM next month in a deal which will value it at around £190m.
Edinburgh-based partner Tom MacLennan will own a stake of just under 1.6% in the business when it floats, worth some £3m at the expected market capitalisation on admission.
The float is also expected to raise £60m for selling shareholders with a further £20m to help fund future acquisitions.
MacLennan who graduated from the University of Glasgow and began his career with Touche Ross, has been working in restructuring and advisory since 1981 and joined FRP in 2013.
He has been involved in a number of high-profile business rescues including an MBO deal which saved hundreds of jobs at Arjowiggins Fine Papers which operates the Stoneywood plant in Aberdeen.
Other partners at the firm, which also has offices in Aberdeen, Glasgow and Inverness, will also benefit from the IPO.
FRP’s chief executive Geoff Rowley said: "Over the last ten years FRP Advisory has grown into one of the leading restructuring advisers in the UK. We operate in a growing market, with insolvency volumes steadily increasing over recent years, while we've also been taking market share and working on increasingly large and complex cases.
"The IPO represents an important next step in our development, which will further enhance our profile and ongoing growth. There are a range of exciting growth opportunities as we continue to grow our office footprint and attract new talent."
Proceeds from a placing of new shares as part of the float will mainly be used by the company to strengthen its balance sheet and to fund acquisitions.
The company is also establishing a share incentive plan and a benefit trust for staff and said it believes “strong employee ownership” should improve incentivisation and retention of employees.
The group has grown from an initial 29 partners in 2010 to a firm which works from 19 offices throughout the UK and comprises 50 partners and around 310 other staff.
