If the early returns of Investor Economics Inc.’s new strategy-consulting division are an indication of its long-term future, then it’s an unqualified success, says Earl Bederman, president of the Toronto-based research house.

The acquisition of the intellectual property of Taddingstone Consulting Group Inc., including a trio of experienced professionals, has been well received by clients and has enabled Investor Economics to branch out to new ones, Bederman says. Terms of the private transaction, completed early this year, were not released.

Bederman says he is “delighted” to have Keith Sjogren, former head of the wealth-management practice at Taddingstone, join his firm to establish an arm specializing in advice on strategies, opportunities and challenges in retail markets, segments and products in Canada.

Bederman also welcomes the know-how behind Taddingstone’s popular proprietary research in specific channels, such as mortgage brokers and millionaire investors.

“I think the best compliment is the flow of business that has come our way from all directions,” Bederman says. “Much of it has come from the Investor Economics’ client base, but some of it has come from others who see the potential in what we have to offer. We’re delighted. The opportunities that have arisen have exceeded our expectations.”

He singles out Taddingstone’s activity in the credit union movement and mortgage-lending business as opportunities for expansion at Investor Economics. “It’s turned out to be an ideal fit,” he says. “We’re trying to go beyond the things we have done in the past.”

Investor Economics specializes in fact-based measurement analysis and research in financial services and wealth management.

Taddingstone’s focus had been on the front end, helping its clients develop revenue through new clients as well as new products and market segments or through acquisitions and alliances. Its clients had included banks, investment dealers, credit unions, insurance companies and investment-counselling firms.

The addition of Taddingstone also means Investor Economics is closing in on 20 employees, which is more than double its total five years ago. It boasts 100 clients who are significant providers of financial services in Canada, including regulators, governments and industry associations. For privacy reasons, Investor Economics doesn’t release the names of its clients.

Sjogren says the company’s future growth will be internal rather than through acquisitions.

“In our view, the rapid changes and innovation that we see taking place in the financial services sector provide us with an opportunity to strengthen our position as an objective and expert advisor to an industry that is pivotal to the well-being of the Canadian economy,” he says. “All industries need research and development if they are to flourish. And we aim to be a leader in that role for financial services.”

Bederman says the feedback from projects since the acquisition of the Taddingstone assets has been very positive, and he credits Investor Economics’ extensive fact and information databases.

“Sometimes it can take a lot of time and money to put those in place before the process begins,” he says. “Companies looking for help generally have a sense of urgency. We’ve always prided ourselves in being able to hit the ground running. Our value proposition is better because a huge part of the project isn’t inefficient data gathering.”

Sjogren says even though there’s a market that’s 10 times the size of Canada’s directly to the south, Investor Economics has no intention of doing work in the U.S. “Our belief is there’s enough business for us in Canada and we don’t have to compete in the U.S.,” he says. “Our expertise is clearly Canadian.” IE