In a statement today (January 10), Frenkel Topping said the acquisition was in line with the firm’s strategy to “pursue quality opportunities” and improved its position in the personal injury and clinical negligence sector.
Cardinal management provides trauma patients and their families with help and support whilst in hospital.
Most of Cardinal's work is within the NHS, where the firm helps major trauma centres improve levels of care and long-term outcomes for patients by giving early access to welfare, legal, rehabilitation and financial support.
The deal will see Frenkel Topping pay £5m on completion of the acquisition and up to £5m based on the Cardinal Management’s financial performance for the years ending December 2023 and December 2025.
For the year ended March 31, 2021, Cardinal Management generated revenues of £0.9m, and reported a £0.3m profit before tax.
Cardinal has a team of 19 people led by Andrew Pemberton, who will remain in place as managing director following the acquisition.
Pemberton said: “Over the last five years we have provided bedside advice and support to more than 5,000 trauma patients and facilitated more than £120m in personal injury compensation awards.
“Our existing relationship with the Frenkel Topping Charitable Foundation demonstrates how the two organisations can, by working together, ensure the long-term stability of the service and provide a home from which the service can develop longer term to help even more patients turn what has been a very bad day, into a better one."
In November 2021, the Frenkel Topping Charitable Foundation made a donation to create a fund for major trauma advisers inside major trauma centres to spend on practical and emotional support for patients immediately after traumatic injury.
These advisers identify patients who have suffered serious injury and need urgent help to manage the practical daily challenges that come with the recovery from a serious injury.
Through its core business, Frenkel Topping also helps individuals achieve damages by providing expert witness services.
It is expected that the latest acquisition will drive future growth in the group's assets under management as successful claims and cases come to settlement.
Cardinal currently has a presence in seven NHS major trauma centres, of which there are 27 across the country, giving the firm the chance to grow and expand.
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.”
In 2020, Frenkel Topping raised £13m as it set its sights on further acquisitions in the personal injury and clinical negligence markets.
In November 2021, it entered its sixth joint venture with law firm Ralli.
The group's five other joint ventures have added £55m of assets under management to the company to date.
In August, Frenkel Topping entered a 50:50 joint venture between its IFA arm and law firm Pattinson Brewer.
This came a week after it purchased legal costs consultancy Bidwell Henderson Costs Consultants in a deal worth £1.48m.
amy.austin@ft.com
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