Along with LSL, which has a stock market valuation of £207.5m, final bids were
received from mid-market private equity firm Graphite for £50m and Bowmark
Capital for £53m.

They had competed with buy-out houses Bridgepoint and BlueGem and trade buyers
Connells and Countrywide.

The problem for private equity was that following the problems BC Partners
faced with the Foxtons debt, banks were less willing to lend enough money to
make the returns work for the private equity model.

Last year BC was forced to write down its equity, inject an extra £50m, and
agree to a debt-for-equity swap with its lenders.

Marsh Parsons covers high end London properties – with 50pc of its
business in lettings – so it has fared reasonably well against the economic
downturn.