Small broker owners can sell up but stay on and in control ‘until they decide to exit the business’
Former Brokerbility owner Stuart Randall is setting up a new business to compete with the likes of Giles and CCV to buy smaller brokers.
Randall’s new company, Ataraxia, is targeting brokers with premium income between £2m and £5m.
Randall says his business is “nothing like a consolidator or network”, instead allowing broker owners to gradually ease into their succession plans.
Ataraxia will pay the broker owners for their shareholdings and then allow them to stay on running the business for as long as they want.
An Ataraxia rebrand is optional and new doors will be opened to agency partnerships with insurers.
Randall has recruited former chief executive of Ignition NBS, Andy Heap, and ex-Evergreen business development manager Adam Boakes.
Randall said: “Consolidators and larger provincial brokers do not have adequate capital, infrastructure or appetite to solve the succession dilemma of 1,500 local brokers.
“And while networks support market placement and offer particular trading enhancements, they do not resolve the range of issues arising from succession planning.
Randall said: “Ataraxia is set to rekindle the relationship between insurers and local community brokers.
“The broker achieves all the financial and tax benefits from selling, but critically retains the ongoing financial benefits, lifestyle choices and management approach until they decide to exit the business.”
Randall stepped down as chief executive of Brokerbility and Brett & Randall following a management buy-out.
Asked whether Ataraxia would compete with Brokerbility, Randall said that Ataraxia was “fishing in a different pond”.
Brokerbility took on broker partners with gross written premium of between £12m and £30m.
“It is completely symbiotic in terms of what we do. I am known in the market as a man of honour; I would never do anything to compromise that, and I will support Brokerbility going forward,” he said.
Brokerbility declined to comment.