London brokers FinnCap Group Plc and Cenkos Securities Plc are planning to ditch their names when they complete a merger aimed at surviving tough market conditions.

The combined entity is expected to be renamed using the Cavendish brand, according to people familiar with the situation. The name comes from Cavendish Corporate Finance, the advisory business founded by Howard Leigh that was bought by FinnCap in 2018. The planned rebrand still requires board approval, one of the people said.

The deal is expected to complete on Sept. 8 after receiving regulatory approval last month.

The two corporate brokers agreed to merge in March in a move designed to weather a dry spell of deal-making and fundraising for listed companies. The new group will employ more than 230 people, with more than 210 clients and in excess of £50 million ($64 million) of combined revenues, the companies said.

The chief executive officers of both companies, Julian Morse at Cenkos and John Farrugia from FinnCap, will become co-chief executive officers of the combined company. Lisa Gordon, Cenkos’s current chair, will chair the new company.

FinnCap was created in 2007 by former chief executive officer Sam Smith after a partial buyout of the stockbroker JM Finn & Co Ltd. Cenkos was founded in 2004 by Andy Stewart, who died in 2021.

Slowdown

Stockbrokers play a crucial role in the City helping smaller companies join the stock market, raise funds and complete mergers or acquisitions. However, commissions have been on the decline for a number of years.

Despite a revival in deals during the pandemic when many companies were in desperate need of funds, there has since been a sharp slowdown in activity.

Stockbrokers have been looking to merge or sell up to cope with the downturn. In April, Deutsche Bank AG agreed to buy Numis Corporation Plc in a £410 million deal.

FinnCap was in talks with Bob Diamond’s Panmure Gordon about a potential combination before agreeing a merger with Cenkos.

FinnCap and Cenkos declined to comment.