Securing Your Legacy – A Guide to Business Succession Planning

In the fast-paced mortgage broking industry, planning for the future is just as crucial as achieving success today. Whether you’re aiming to grow, merge, or step back from your business, a well-thought-out succession plan ensures you protect what you’ve built and safeguard your clients’ best interests. In a recent webinar hosted by Mr. Mentor, Sam Boer, Business Development Director at Empower Wealth, shared his wealth of knowledge on succession planning.

Below is a summary of key insights from the session, including essential takeaways for brokers at every stage of their career.

Key Highlights from the Webinar

1. The Importance of Succession Planning
A smooth transition isn’t just about exiting your business; it’s about maintaining the value you’ve created over the years and ensuring your clients remain well-served. Whether you plan to retire, sell, or merge, starting succession planning early puts you in control of the process.

“At some point, every career in broking will end – the question is, will you be prepared for it?”

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2. Think Like a Buyer: Would You Buy Your Own Business?
Understanding how your business would be valued by others is key. Sam discussed several factors that influence valuation, including client retention, business growth, and financial management. He recommended every broker periodically assess their business with the question: “If you weren’t the owner, would you buy your business?”

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3. Challenges and Risks of Diversifying Your Business
The session also explored the pros and cons of expanding into other services, such as commercial lending or asset finance. While diversification can create new revenue streams, it requires expertise and resources to do it effectively. Brokers need to ensure their core service quality isn’t compromised in the process.

“Specialisation builds trust. Trying to do everything can sometimes erode it,” said Sam.

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4. The Role of Aggregators in Your Succession Plan
Aggregators play a crucial role when planning for succession. Many brokers overlook involving their aggregators early in the process, missing out on valuable insights and support. Aggregators can also connect brokers with potential buyers or partners, making them an essential ally in the transition.

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5. Creating Multiple Revenue Streams for Greater Value
The panel discussed how diversifying revenue streams can add value to a business. Even solo operators can expand by incorporating complementary services, such as buyer’s agency or financial advice. Building these streams strengthens the business and attracts potential buyers who are looking for more than just a loan book.
“More than ever, clients expect a holistic financial service,” Sam emphasised.

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6. Protecting Client Relationships During the Transition
Maintaining client relationships through the handover period is essential for a successful succession. The webinar shared strategies such as phased transitions and incentivising outgoing brokers to continue referring clients to the new owners. This helps buyers maintain trust with clients and ensures minimal disruption during the change.

Watch the Webinar Replay

If you want to dive deeper into these topics and hear directly from Sam Boer, check out the full webinar replay above. Learn about the nuances of growth strategies, the right time to consider succession planning, and how to position your business for maximum value.

Whether you are an experienced broker looking to exit the industry or a newcomer aiming to scale your business, there’s a wealth of knowledge in this webinar to help guide your next steps. Remember, success in broking isn’t just about size; it’s about strategy, planning, and positioning yourself for the future.

If you’re looking to discuss more about this topic on succession planning with Sam, reach out to us at [email protected].

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