In its most recent UK takeover targets list, Liberum deems the financial planning firm “an attractive M&A prospect, on a number of levels.”

Brewin Dolphin’s cost base and legacy issues have been “largely addressed” the broker suggests; a “successful” improvement programme (which included a move towards discretionary fund management) initiated by management in 2013 is also praised, and the firm’s target profit margin of 25 per cent is deemed to be “assured”.

“We think a FY16 P/E ratio of 14.7x and a yield of 4.8 per cent looks good value for what is arguably a very valuable strategic asset in the rapidly consolidating UK wealth management market,” the Liberum report determines. The broker places a target price of 347p on Brewin Dolphin shares.

In the report’s conclusion, it is noted that the trend of wealth management consolidation appears set to continue for this year and beyond; the report suggests that Towry’s £120m purchase of Ashcourt Rowan is evidence that “scale is increasingly seen as a key driver of success.”