Edmonton-based Pinnacle Wealth Brokers Inc. is set to become the largest exempt market dealership in Canada, with the acquisition of one of its main competitors, Global Exempt Market Solutions.
Pinnacle announced this week that it was acquiring the Calgary-based dealer as part of a broader strategy to beef up its presence across the country.
“Global Exempt Market Solutions has been our closest competitor in the marketplace, and we are delighted to have them join forces with us,” said Darvin Zurfluh, founder, director and executive chairman of Pinnacle Wealth Brokers.
The two companies are very similar. Both provide alternative investments, allowing Canadians the opportunity to invest in private offerings generally not available on the public stock markets. They were among the first brokerages in Alberta dealing in exempt market products.
“We were both doing this four years ago, five years ago, and there wasn’t really any other noticeable players in Alberta,” said Zurfluh. “We were two of the early adopters.”
Both firms have networks of advisors throughout Alberta, British Columbia, Ontario, Manitoba and Saskatchewan. With the acquisition, Pinnacle will now be the largest exempt market dealership in Canada, according to the company, with more than 80 dealing representatives – nearly double its existing network of 45 reps.
“Our partnership creates one of the most sophisticated organizations of its kind in the exempt market sector,” said Rick Unrau, previously CEO of Global Exempt Market Solutions, who has been appointed president and CEO of Pinnacle. “We will be able to provide services, efficiencies, products, and geographic diversification to both our agents and clients, unparalleled in the marketplace.”
The executives expect the acquisition to provide substantial economies of scale, with particular cost savings related to legal affairs, accounting and back office operations.
The merger follows another recent deal struck between Pinnacle and ExemptAnalyst, to bring the exempt research firm “in house”. William McNarland, CEO of Exempt Analyst, has been appointed Pinnacle’s chief investment officer.
Pinnacle has ambitious plans for more growth. It expects to expand into Quebec in the near future; it’s actively recruiting new reps; and it’s exploring the possibility of more acquisitions of smaller dealers – particularly in Ontario.
“There’s a lot of things I want to do to build the organization further,” says Zurfluh.
In addition to providing exempt market services, Pinnacle also has an insurance division called Pinnacle Wealth Planning, which offers life, critical illness and disability insurance, along with estate planning services.