A clear succession plan for your insurance brokerage

The Broker Investment Group provide the ability to gently de-risk from your brokerage by selling a minority stake in a few clear steps, over a period of years to suit you and the business entirely.

You do not lose control of your business or its profits until you decide it is time to pass the business on to a new owner or manager.

We initially purchase an equity stake of your choosing, usually between 20-49%.

You may want to sell a minority stake as part of your ultimate retirement plan – and get to enjoy some of your hard-earned equity - but wish to continue with your great work for some years to come.

Additionally, “cashing in some chips” now may suit your tax planning? We all have a watchful eye on Capital Gains Tax – and specifically the Entrepreneurs’ Relief Benefit that is currently available.

Or perhaps you need a cash investment to buy out a departing shareholder?

Either option is covered by a minority investment by The Broker Investment Group, and we have a proven track record of investment in insurance brokers throughout the UK. Some business owners value our industry expertise and welcome our input into their brokerage strategy. The Broker Investment Group offers a great option for owners of an insurance brokerage that wish to sell a minority share but remain in full control of their business.

What we do?

We are a unique business that makes minority investments into insurance brokers and supports them in their succession ambitions. Many brokers are thinking about retirement and succession planning but aren’t ready to hand over the reins nor execute a complete sale of the business. However, for a variety of different reasons, you may wish to sell part of your business which ensures you release some equity for you to use TODAY and not several years down the line – whilst remaining in full control of the business and with the promise of more equity to follow when the total sale occurs.

These investments are always minority investments, allowing insurance brokers full control of their business as before. Investments are typically between 20-49%

Future succession planning is also one of our niche specialisms that you may wish to explore with us.

Supporting your succession planning via a minority investment in your insurance brokerage

The Broker Investment Group are keen to invest in insurance brokerages that wish to sell a minority share. This may be retirement planning or buying out an existing shareholder.

The ultimate goal being to continue growing your brokerage year-on-year until you are ready for the final sale/exit of your brokerage and to maximise the business value. Selling a minority stake in your insurance brokerage doesn’t necessarily mean you don’t have continued growth ambitions. In our experience, this is far from the case, you still have the fire in your belly that helped you grow your business in the first place! However, circumstances - or perhaps the wish for a slightly more relaxed lifestyle - make a partial sale attractive for many owners of insurance brokers.

The Broker Investment Group can help share the burden with you, perhaps allowing you to work fewer hours per week or assisting with onerous, time-heavy tasks such as FCA and compliance issues. Or perhaps access to some of our key insurers and bespoke schemes is attractive?

The key point is that you as shareholders remain in complete control, whilst enabling you to de-risk by releasing some equity and perhaps start a succession plan. This may involve a gradual handover to trusted members of your current team.

The Broker Investment Group have no ambitions to run insurance brokers...

simply to work closely and in partnership with insurance brokers that value some support.

We will simply add value with our “been there, done that” insurance market knowledge, contacts, and our own knowledgeable yet friendly team.

What really makes us different is that we are honest, transparent and - dare we say it - likeable!

We totally understand that selling shares in your business, even as a minority, is a big step and it is important that we work well together, and you are happy with your decision post-sale. Getting on together will be key – we are reliably informed that we are great to work with! – and welcome as many “getting to know you” meetings as you’d like.

If mutually agreeable, we can then move forward with some more concrete discussions about future strategy and any potential investment/equity purchase.

Of course, you are welcome to speak with the business owners of insurance brokers we have invested in, and worked with since investment, to hear direct from the owners of other businesses about their experience to date.

Our access to insurer schemes, niche markets, enhanced commissions, marketing support, and compliance advice ensures we can work closely with you to increase both your new business wins and renewal retention percentage.

There are 3 keyways in which The Broker Investment Group can assist insurance brokers with a minority investment. Every business is different and has a different share ownership structure and a unique complexity in terms of both age and ambitions of shareholders.

Typically, we buy minority investments because of the following three reasons:

1. Retirement planning

The business owner is planning retirement in 2-5 years’ time and wishes to sell a minority stake to release some equity to help:

  • Work fewer hours/days while still running the business
  • Lead generation for New Business acquisition
  • Finance some well-earned holidays and do bucket list activities
  • Partial rather than full sale so ability to earn monthly income and dividends rather than live off the sale proceeds

2. Buy out existing shareholder

You may have a shareholder that wishes to retire, and you need equity release to buy their shares. Or a change in strategy perhaps whereby a shareholder is departing the business.

A minority sale of equity is the perfect solution to either of these scenarios with the added bonus – should you want it – of our experience and advice too!

3. Future growth plans

Selling a stake in your business doesn’t mean the slowing down of growth, revenue and profit.

The Broker Investment Group have assisted and invested in insurance brokers who simply want support in growing their business further whilst also enjoying early equity release. A real “win-win” if we work together to grow the business, and in theory, replenish and then exceed the original equity release!

Our value-adds include:

  • Marketing support, PR and websites (in-house The Broker Investment Group consultant)
  • Compliance support
  • Sales and Renewal strategy
  • New schemes / insurers

Benefits of a minority investment with The Broker Investment Group

You remain in full control of your firm until a point of YOUR choosing:

Many of the insurance brokers that we have invested in have actively sought our help and advice to help grow their business further. This can be organic growth strategy and implementation, using our insurer relationships to get access to new schemes, or acquisitions and due diligence support.

And there’s more...

The Broker Investment Group can also assist insurance brokers with the following:

Strategic Planning

Allow The Broker Investment Group to assist you in producing a 5-year plan for your insurance brokerage. Our experts have done this for our current investments, giving a clear direction for future growth.

Marketing

The Broker Investment Group has an in-house marketing consultant with 15 years’ experience in assisting insurance brokers with their digital and print marketing strategy and communications. This includes New Business and Renewal marketing support.

Compliance

FCA and other factors such as GDPR have made compliance within a modern-day insurance broker more challenging and time consuming as ever. Allow us to share best practice and support you.

Market Forecasts and Data

We can source and compile market data, in line with your chosen target markets. Allowing you visibility and market intelligence in your core market and any niche markets of interest.

New Branches

We have assisted brokers expand their reach into new geographic areas. Sometimes a key insurance account executive becomes available to hire who lives/operates in a different location to your business, this is an ideal opportunity to grow your market share and book.

Budget and Accounting

Support for forecasts, SOTO’s, budgets, targets, revenue, and profitability.

Acquisitions and Due Diligence

This includes identifying or introducing potential acquisitions, assisting in valuations, and support in due diligence.

Talent Sourcing

The Broker Investment Group are well connected in the insurance industry and know a lot of people, so we can help you find key personnel for your business. This could be front line Insurance Advisors or Commercial Account Managers or back-office roles in accounts or compliance for example.

Fund Raising

If you are planning acquisitions and need further borrowings, The Broker Investment Group can introduce lenders who have both the appetite and understand the intricacies of buying insurance brokers.

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