Loan Market Group helps brokers focus on succession

Loan Market Group (LMG) has embarked on a strategy to address one of the Australian broking industry’s emerging issues.

Four out of five brokers in Australia are aged over 35 but few had given succession planning enough attention, according to the Group.

LMG - LMG, PLAN Australia, Choice Aggregation Services and FAST Group - is hosting a series for business owners next month focusing on how owners can spend less time in their businesses and maximise the value of their trail books.

Separately, Loan Market has launched its innovative Brokerversity education and training platform which will bring the next generation of mortgage and finance specialists into the industry who will both add value and potentially take equity in existing businesses.

Loan Market Group Executive Chairman Sam White said succession planning and exit strategies had become the ‘sleeper’ issue for the industry.

The MFAA last year estimated only 18% of brokers were aged under 35. The average age of a Loan Market broker is 44; for the wider industry, it’s over 50.

The MFAA last year estimated only 18% of brokers were aged under 35. The average age of a Loan Market broker is 44; for the wider industry, it’s over 50.

“With the pace of lending and regulatory change over the last two years, it’s been difficult for business owners to look beyond immediate challenges and think about how and when they want to exit their businesses,” said Mr White.

“Subsequently, succession planning and exit strategies have become a sleeper issue for the industry.”

While LMG was committed to helping businesses grow, it also assisted business owners in exiting their businesses on their own terms, maximising their contribution and investment in the business.

For many owners, exiting the business was a staged process, said Mr White.

“Most don’t want to exit immediately, but they have a date in mind,” he said.

“In the short-term, they may want to work less, but have systems and procedures in place so their business can thrive without them needing to be in there day-in, day-out.”

One of the advantages of approaching success planning from a group perspective was starting discussions that may create acquisitions and trail book purchases.

LMG will host sessions beginning in Melbourne on November 22, November 25 in Brisbane and February 9 in Sydney covering succession planning. Half-day sessions will cover:

• Valuing a business and techniques to maximise the sale price;
• 21-step process to exiting a business;
• Preparing an exit strategy (attendees will document their own strategy).

Loan Market’s Head of Broker Business Performance, Ashley Ross leads the development of strategic framework models and analytical tools to optimise performance of distribution networks and revenue uplift. Ashley is an experienced Chartered Accountant working exclusively with the Biggest Brokers in Loan Market specializing in FP&A, EBITA improvement, KPI tracking, cost control and business investment strategies.

Ashley along with Succession Plus partner Vicki Massey will present on business value maximisation and employee share arrangements.