Berkshire-TWC partnership viewed as

(September 19, 2003) A merger agreement that will see two of Canada’s independent financial planning firms join forces is being viewed as a natural fit by industry analysts and is being welcomed by advisors.

Yesterday, Ontario-based Berkshire and Saskatchewan’s TWC Financial announced they were teaming up to create a firm with more than 1,000 advisors and $10 billion in assets.

“It seems like a logical fit to me,” says independent fund industry analyst Dan Hallett. “Both are of similar sizes and cultures — and have quality people and back-office platforms.”

Advisors also seem to like the new partnership. “I think it is a good fit,” says Blaine Dickson, a TWC branch manager in Kelowna, B.C. “Both have highly regarded back offices, are staunchly independent and are tech-savvy companies.”

“I have to say I’m quite relieved,” adds Kevin Cork, a branch manager with TWC in Calgary. “It’s one of the companies that I prefer. If we have to be sold, it’s a pretty good option.”

Cork says the deal ends the uncertainty about the future of TWC. “Now that we have a clear idea of where we’re going it makes things easier for conversations I’m having with clients.”

TWC president Tim Calibaba has been overwhelmed by the positive feedback he’s heard from some of his advisors. “And the Berkshire people seem very pleased, as well, from the comments I’ve heard.”

In a press release issued yesterday, Calibaba and Berkshire president Michael Lee-Chin said they wanted to ensure Canada’s independent advisors were protected.

“I don’t know if ‘protection’ of the independents was a true motive but TWC certainly strikes me as the staunchest of independents amid the convergence of fund companies and dealers,” Hallett says. “Many advisors value their independence — both real and perceived — so having a sizable player to cater to that contingent is a role that somebody was going to fill.”

And despite Berkshire’s affiliation with AIC Funds, also owned by Lee-Chin, Berkshire “appears to me to be about as independent as a dealer can be,” Hallett adds.

---

Related News Stories

Berkshire joins forces with TWC Financial TWC set to announce merger deal, sources say

“The culture fit was a key factor and the independence was a key part, too,” says Calibaba, who says TWC was negotiating seriously with three different companies before settling on Berkshire. “AIC really operates separately from Berkshire and that independence is precious for our people.”

Calibaba today revealed a few more details about the merger, expected to close at the end of October. “Our shareholders will acquire shares of the new company and there was also a cash consideration,” he says, adding that Michael Lee-Chin will have approximately 75% ownership of the firm, to be known as Berkshire-TWC.

As for TWC’s office in Radville, Saskatchewan, Calibaba says its future has not been finalized. “But we will have employees located in Radville, that’s for sure. We have a strong Western presence and we want to make sure we can provide that service.”

The Berkshire-TWC deal has created lots of discussion in our online forum. Join the conversation in the “Free for All” forum of the Talvest Town Hall on Advisor.ca.

Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca

(09/19/03)

Doug Watt