Niche PPI broker British Insurance, run by Simon Burgess, could be sold within the next two months.
The business, which was put up for sale last month, has created a shortlist of six potential suitors, including a major European investment bank.
"There has been a great deal of interest and we are looking to have it wrapped up in the next couple of months," said Burgess, who could net up to £25m in a sale.
"We are a small, niche fish in a very big sea of PPI which has £5bn a year in commissions. It is a significant market with huge opportunities."
If a European investment bank were to buy the company, it would further indicate how brokers are attractive purchase prospects for foreign entities wanting to break into the lucrative UK insurance market.
French investment bank BNP Paribas already owns PPI specialist insurer Cardif Pinnacle
British Insurance has made its name as a "consumer champion" offering PPI policies at rates cheaper and more comprehensive than banks and other lenders, who offer PPI as part of a loan.