The Broker Network Limited (BNL) has unveiled a new solution for the problem of owner succession for insurance brokers.
The solution is designed to cope with problems that arise when a principal stakeholder retires. BNL says: "Potential successors often have a problem securing sufficient finance and increased revenue flows within the business to buy out the principal."
With this in mind BNL has come up with 'Stakeholder'. This is a plan which incorporates providing funds, BNL membership and support for management.
As well as providing necessary funds, BNL will take a minority stake in the business. It says it will also provide an experienced non-executive director or partner to act as a mentor.
BNL believes this will make lenders look more favourably on potential successors, helping the parties to strike a deal.
