Burgeonvest Financial Corporation

Bick Financial Corporation

December 17, 2007 16:02 ET

Burgeonvest Financial and Bick Financial Announce Strategic Combination

TORONTO, ONTARIO--(Marketwire - Dec. 17, 2007) - Burgeonvest Financial Corporation ("Burgeonvest") and Bick Financial Corporation ("Bick") announce the formation of Burgeonvest Bick Corporation ("BBC"), which will merge their respective investment operating companies into an enterprise specializing in full service investment advisory and wealth management. Subject to regulatory approval, Burgeonvest will transfer its wholly owned subsidiary, Burgeonvest Securities Limited ("BSL"), an IDA member and TSX participating member; and Bick will transfer its wholly owned subsidiary, Bick Financial Security Corporation ("BFSC"), an MFDA member, to BBC at the close of business on December 31, 2007.

At the same time, Burgeonvest will transfer its wholly owned subsidiary Burgeonvest Insurance Corporation ("BIC") to BBC. Advisors at both BSL and BFSC who are dually licensed to offer insurance products will offer these products through BIC.

As before, all three subsidiaries of BBC will operate as stand alone business entities under their own names. However, in the future clients will benefit under the new enterprise since they will be free to access the specialized services and products of each of the other two companies. These services and products will be formally facilitated with a clear understand of which entity clients are dealing with.

Mario Frankovich will be CEO of both BFSC and BSL. He describes the BBC integrated enterprise, as a significant new entrant in the independent investment advisory world and added, "for clients who are looking for a full suite of services and products, they can find those through BBC. Likewise, for advisors who are looking to provide it all to their clients, these advisors can find it all through BBC." While the proposition of offering IDA, MFDA and insurance platforms within a single group of companies is not novel, and in fact the model is being applied elsewhere, Frankovich points out that one of a number of advantages that BBC has is that each of its IDA, MFDA, and insurance operations are successful growing businesses in their own right.

The roots of the strategic merger are long and deep. Clarence Bick, Co-founder of Bick and BFSC commented, "we have known Mario since 1985 and made a point over the last 15 years of regularly meeting for lunch to discuss industry issues." BFSC's business has grown so rapidly over the years that hiring a President to run the organization started to make sense and the mutual advantages of merging activities is significant. Mr. Bick noted that, "it is our view that the synergies from merging our activities will boost growth as the advantages to both clients and advisors become even more obvious, and as advisors in southern Ontario recognize us as a sizeable full service independent firm."

Leonard Bick, Co-founder of Bick and BFSC agreed observing, "that this new enterprise will provide a significant option for clients and advisors who are looking for an independent alternative. Banks and other integrated large financial institutions, which have a potential conflict of interest due to their broad influence and control over firms providing advice to Canadians, are one type of advisory model. We believe that independence is important for our clients and that is the model that BBC intends to deliver."

The subsidiary companies of BBC provide advice and service to approximately $1.1 Billion of client investment assets through 11 offices in Ontario.

Contact Information

  • Burgeonvest Securities Limited
    Mario Frankovich
    President
    (905) 528-6505
    or
    Bick Financial Corporation
    Clarence Bick
    President
    (905) 648-9559
    or
    Bick Financial Corporation
    Leonard Bick
    Vice-President
    (905) 648-9559