Announced: Warren Buffet Affiliate Acquires Prudential, Fox & Roach
HomeServices of America, which is an affiliate of Warren Buffet’s Berkshire Hathaway, announced today that it acquired the assets of Prudential Fox & Roach Realtors and its subsidiary, the Trident Group. Sales associates and employees were sent a video of CEO Larry Flick–whose role will remain the same–explaining the move in plain language.
One of Flick’s more important points: “Prudential is out of the real estate business. Some of us view this as a loss, but whether we like it or not, it’s done.” Flick said the three PruFoxRoach principals then had to decide which way to go–whether to be independent or partner with another franchise. The Berkshire Hathaway opportunity was, Flick says, a perfect match:
When you hear names like Berkshire Hathaway, Warren Buffet, what comes to mind? I’ll tell you: Integrity, trust, stability, success, philanthropy. With Warren Buffet at its helm, Berkshire Hathaway has gained immense respect as a company that values long-term goals and reputation above short-term profit.
In this message to employees, Flick concedes that it may be hard to imagine such a big company would have time to devote to a smaller company. But he goes on to say, “This is the first time Warren Buffet has allowed the Berkshire Hathaway name to be used as a consumer brand.”
A new website launched as well. For consumers, there’s a brochure to explain and promote the change. The woman on the front of it must surely be happy with the deal — she appears to be opening the gates of heaven.