The different sources of funding for MBOs or selling up and leaving the business come under the microscope.
Phil Bayles, chief distribution officer, intermediaries, at Aviva says there are 101 options for brokers in the market looking for funding.
"We do see a lot of demand for MBOs, people wanting to pass the business down ... to members of their family or other management," he states.
From bank finance and private equity to crowd funding and more, Bayles address the constraints and bonuses of each option along with the mind-set needed to make each a success.
He reveals that the insurer has been involved with over 30 deals in the past two years.
Adding: "People like lending money into the broking segment, it has nice cash flow, strong profitability and a good track record. There are lots of options."
Watch the video to catch up on the differing implications of accessing each deal source.
And catch up on all the videos from this week long look at succession planning:
The FCA’s consultation on the Insurance Distribution Directive ends soon and Branko Bjelobaba wonders if the IDD goes far enough
The jailing of a fraudster led the clicks this week, followed by profits, a buyout, an FCA warning and an apology from the CII.
Pen Underwriting’s Nick Wright, argues that now is the time to address the root cause of commercial payouts with proper risk management and prevention of workplace accidents.
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