Formation Group approached by management buyout team.
The two parties are currently undergoing talks in an exclusivity period.
The buyout team, which is being led by chief executive Neil Rodford, and backed by Gresham the private equity firm, is interested in purchasing five out of the agency's seven divisions to include Proactive Sports Management and talent-management agency James Grant.
Formation's other businesses include Formation Sports Capital, and O J K ilkenny wealth management subsidiary which provides financial planning, investment advice and insurance services for entertainers.
These two businesses will also be included in the deal.
Formation, which also has Simon Cowell and presenter Fearne Cotton on its books, was established in 1987 and was floated on the AIM market in 2001.
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