Ernst & Young Financial Management (EYFM) has suffered dwindling revenues and falling profits over the past few years along with the rest of the IFA sector.
The IFA arm, founded in the mid-eighties, has seen operating profit fall from 192,000 for the year to June 2001 to an operating loss of £180,000 for the year to June 2003.
E&Y said the sale was part of its strategy to concentrate on its core business.
All 121 staff will transfer to Cavanagh, also a high net worth IFA, in a reverse takeover that will give the combined company a head count of 206.
EYFM has 3,500 clients, including 500 current and former partners of Ernst & Young.
Richard Cartwright becomes the new head, taking over from incumbent head of office David Lemon
Brian Burke, business development director, has moved within the firm to 'develop Quantuma’s networks with Sussex professional firms'
Stephen Mills joins the Manchester office from IBM, where he spent 12 years as an associate partner in the data, analytics and cognitive consulting group
Rupert Guppy will be responsible for capital allowances in the southern region, and joins the firm from specialist consultancy E3 Consulting