The important thing in the generational change in a brokerage company is the people. Tax and legal aspects are rather secondary. The problems are diverse but solvable, says Hans-Georg Lauer, coach at the Broker Successor Club. There is no royal road, as the “relationships with the transfer are too complex and both the family entrepreneurs and the business environment are too different.” Article from Versicherungswirtschaft.de dated 09/25/2017.
The transfer is particularly difficult because the outgoing broker has built close relationships with their clients over the years, which cannot be easily passed on. “What is transferred in terms of inventory is only valuable if the successor manages to build a sustainable relationship with the clients in the inventory,” says Lauer, who is intensively involved in succession for brokers.
Thorough preparation is important because if the transfer is not sufficiently prepared or happens too quickly, it can lead to the successor being overwhelmed, which according to studies, fails in almost 50 percent of cases.
Problem of family closeness
Brokerage firms often stay within the family, even if the son or daughter is not suitable for or interested in the business. “Family membership then decides the employment contract and not professional competence. This overrides important selection mechanisms. This often does not go without consequences.” Therefore, it is crucial that “the owner separates the systems of family and business early on,” because “not every family member is automatically suitable for a broker activity.”
Timing is everything
Even if a suitable successor is found, problems can still arise. Especially the outgoing broker often finds it hard to let go. Lauer: “Sometimes transfers fail simply because they were planned and tackled too late. The senior hesitates and does not find the right moment to jump off. Instead, he keeps interfering in day-to-day business, which deters the junior. The outgoing owner cannot commit to a transfer date, which wears down the junior prospectively.” Therefore, good communication between all parties involved is important, where a coach can help.
The Coaching
The people involved in succession for brokers often fail to differentiate between their role in the family and in the brokerage company. This is often where coaching begins, explains Lauer. “Coaching helps to structure the process well, define the tasks at hand, and identify and defuse conflicts early.” You can read the full article at http://versicherungswirtschaft-heute.de/maerkte-vertrieb/makler-wichtig-bei-der-nachfolge-ist-der-mensch/ (vwh/mv)
