NCB Stockbrokers was set up in 1981 by Mr Dermot Desmond and is now the third-largest brokerage in the Irish market. The firm started out as a money broker but moved into stockbroking after it took control of the small stockbroking firm, Dillon and Waldron.

It aggressively expanded and became involved in many major deals, acting for Pernod Ricard in the takeover of Irish Distillers. It brought Greencore to the market and advised the Government on the initial sale of Irish Life shares.

The business was acquired by Ulster Bank in 1994 at a time when brokers were increasingly aligning themselves to large institutions with robust balance sheets. Ulster Bank, which was then part of the National Westminster Bank group, paid €32 million for the firm.

In 1999 NCB suffered one of the biggest staff defections in Irish stockbroking history when seven executives, headed by its then deputy managing director, Mr John Conroy, left to form a rival stockbroking firm, Merrion Capital.

The following year, National Westminster was taken over by Royal Bank of Scotland. In 2002 the bank began to sell off stockbroking and other non-core operations and effectively placed a "for sale" sign on NCB.

CIC Securities, the stockbroking arm of French banking group Crédit Mutuel, held talks with the bank but these broke down in April this year. It had been expected to pay €25 million for the firm but an agreement could not be reached on the price.

A management buyout was then considered but about six weeks ago this foundered. Key Capital had advised CIC Securities on the NCB sale and had a good knowledge of the business. Its managing director, Mr Conor Killeen, and other executives had worked closely with staff in NCB over the years and about a month ago talks began between both parties.

Mr Desmond's participation through IIU allowed the €20 million deal to be made ahead of signing off an agreement with an institutional buyer. The price, which is substantially less than Ulster Bank paid for it almost 10 years ago, reflects the weaker investment markets and the lower profitability of the firm.

NCB provides research and dealing services in Irish equities, offers wealth management services to customers and has a successful corporate finance business.