Network not for sale

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One broker network executive has dispelled the notion that his company is looking to sell “to the highest bidder” following a deal that saw an influential channel player make an equity investment.

“This is an interesting development, you wonder if this is the beginning of the banks gaining further control of the market and no better way than buying your way in and then making changes that will benefit the corp,” an anonymous commenter said on MortgageBrokerNews.ca. “If the right offer came to the principals of Verico it’s hard to think they wouldn't sell the remaining shares of the company.”

Verico recently announced B2B Bank had made an equity investment in the major broker network.

John Kelly, Verico COO took to the comments section of MortgageBrokerNews.ca to assure its brokers – and those interested industry professionals – that a controlling stake of the broker network is not currently up for sale.

“I can tell you that over the past ten years ‘the right offer’ has routinely crossed our desks every year to sell control of Verico Canada,” Kelly said. “We said no emphatically each time then, and we said no with this investment decision.

“Why? Admittedly, not solely out of any misguided sense of satisfaction. But simply because Verico Canada has always been a blue chip ‘buy and hold’ for us,” Kelly continued. “It remains that way today. We like the company, the people, and the business.”

Specific details of the Verico and B2B Bank deal have not yet been released.
 
  • Deborah on 2014-07-10 12:10:56 PM

    The banks wanted to get into the stock market and purchased their way into that too! Just buy a brokerage firm and Voila!

  • Smart Broker on 2014-07-10 12:26:05 PM

    Please stop with this non sense! Verico has been for sale for years. They had discussions to sell the company to DLC, Mortgage Architects and Canadian First Bank!

    why does this industry needs to make stories up to make themselves feel good?

  • Ron Butler on 2014-07-10 2:54:50 PM

    Every company could be sold in this country with the possible exception of the Big 6 banks. There is no shame at having another company asking whether they can purchase you. All the super brokers and networks are all for sale if the price was right. I am dead certain of that.

    Banks have bought and built super brokers and networks before. All ended in tears.

  • Pete on 2014-07-10 6:09:58 PM

    I agree. Not for sale? Not likely. Everyone is for sale, except apparently Verico now. And there is no shame in that. In fact isn't it flattery.

    Even if DLC, Mortgage Architects and Canadian First have tried to buy Verico, I guess we know what their response was now..."apparently, no thank you"

    Pretty strategic defensive pill if you ask me. The existing management maintains ownership and management control and is no longer subject to the current "we're buying" nonsense.

    game on for all the others now :) ...

  • Deborah on 2014-07-10 6:18:11 PM

    why is this news anyway? Who cares? Everything is for sale for the right price, if the banks want to throw tons of money at something they will eventually hit the right price. Ultimately they don't pay for it anyway, we the consumer do.

  • Paul Therien - CENTUM on 2014-07-14 2:04:26 PM

    I find it interesting that people spend so much time and energy speculating on who is for sale or not. Also the speculation that EVERYONE is for sale… well that is simply not true.

    As the brand leader for one company who is constantly rumored to be "For Sale", it is interesting to note that these rumours are usually started by the competition as a franchise sales tactic to try to demonstrate the instability of the organization. In fact I was recently contacted by one of my franchisees last week who told me that the president of another company called to let them know just that – that CENTUM was “On the block”. An absolutely untrue statement. Our parent company, the Charlwood Pacific Group, is one of the largest and the most recognized franchise organization in the country. In the 12 years that CENTUM has been around, they have never even entertained ENQUIRIES about purchasing CENTUM. Perhaps it is best demonstrated with a quote from our founder… “we build and buy companies – we do not sell them” – there is nearly 50 years of proof in that statement as well.

    Are mergers, sales and acquisitions going to occur? Of course they will, it is the nature of business that this happens. It is how room opens up for new brands, and for others to grow. Not everyone wants to be a part of a behemoth that is primarily focused on making money. Some people want to be a part of a family, not just another brand.

    The reality is that these rumours really are only destabilizing the industry through the creation of uncertainty in the minds of agents and brokerage owners. It is why there are certain companies out there that use them as a franchise sales tool – to create uncertainty and then capitalize on that to pull someone into their brand. It could also be that they don’t have the value proposition that they claim and this is their only way to get people to consider joining them.

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