The local stockbroking industry is no stranger to rationalisation.
Austock's stockbroking division and Southern Cross Equities were among firms acquired post the global financial crisis, while Sydney-based BBY collapsed two years ago.
Street Talk understands the latest company to be weighing options is Shaw and Partners.
Sources said the Earl Evans and Allan Zion-led firm had boutique advisory house Luminis Partners in its corner.
One of the options under consideration is a sale of the stockbroking and wealth business. Sources said informal approaches to potential buyers had been made, although it was unclear whether those discussions had continued.
On Sunday, Shaw chairman Paul Masi told Street Talk the firm wasn't currently in discussions relating to the company's ownership.
Shaw reported a $1.3 million profit for the year ended June 30 2016, up from $1.1 million in the same period a year earlier. That was despite a significant jump in costs which reflected a wave of hiring last financial year.
Floats that Shaw helped manage during that period included National Veterinary Care and Shaver Shop Group.
Stockbroking firms aren't the most attractive takeover targets anymore, but rivals seeking more scale or a foothold in Australia may take a look.
Complicating matters, Shaw is also among brokers that are navigating a decision by clearing firm Pershing to cease dealing in naked options.
As part of the changes, this column understood the firm lowered the shareholder approval threshold for a takeover to about 51 per cent from 75 per cent.
The new benchmark removed an extremely high hurdle for any change of control. The level required now is 51 per cent of total capital or of all shareholders to approve a takeover.
Shaw was subject to a potential takeover in 2009 when Investec was hired to scope out buyers after Harold Shapiro stepped down as managing director. He later sold down his holding at a discount.
