Succession Planning
You may want to sell a minority stake of your business, as part of your retirement and succession plan, to enjoy some of your hard-earned equity while you are young enough to enjoy it or to take a step back from the day to day running of your business.
Whilst the goal will be to continue growing your insurance broker year-on-year until you are ready for a 100% sale of your business, selling a minority stake beforehand makes total sense and allows you to remain in full control of your business whilst enjoying some hard-earned cash.
As it’s only a minority stake, you will still have control of your business to drive strategic growth plans however, with the opportunity to step back a little if you wish to do so. That’s what succession planning is all about, passing on your knowledge and allowing your successor to blossom under your guidance whilst sharing the load a little bit.
Retirement Planning
As the business owner of an insurance broker, you may be thinking about your retirement and what you would like to do in the next 5 years. A minority stake can release equity to support your plans of:
• Reducing your hours while still running your business
• Lead generation to create a pipeline to support the future of the business
As a minority stake, you can earn monthly income and dividends rather than a one-off lump sum from a 100% sale – with the opportunity to grow the business faster and further and even replace the percentage that you sold!
Future Growth Plans
Selling a minority stake in your business doesn’t mean slowing down in terms of growth, revenue and profit.
While you enjoy early equity release, you can replenish and then exceed the original equity release with the support of the Minority Broker Partnership Team.
With access to a superb panel of partner insurers, potential increased profits, sales and marketing support, alongside a compliance team and accounts/book keeping support, MBP can really supercharge your brokers growth.
