Mortgage broking businesses need to work harder to understand how they wish to exit their businesses when the time comes, according to a financial services consulting expert.
Comparator Business Benchmarking managing partner Sarah Brennan has said professionals not understanding what they want to do or achieve at the point of sale is the "number one thing" her business sees broking and planning businesses doing wrong during their industry exit.
"Succession is such a key issue, not matter what stage of the business you are at," Brennan said.
Brokers have been urged t put in place a "succession business plan" to prepare their exit strategy.
"That is different from a normal business plan - it's a business plan about the future which asks in whatever period of time you wish to exit the business, how you are going to achieve that."
Brennan said brokers might choose different strategies, such as exiting the business completely and not working in it anymore, or instead working in the business for a further three to five years.
This is in addition to other succession issues such as putting in place buy/sell agreements and sponsoring younger professionals into practices, Brennan said.
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