- Succession planning – founders wish to retire and the next generation may not wish to continue with the business in its current form, or at all.
- Compliance – regulatory compliance can impose a significant burden on smaller firms, whereas consolidators can typically deal with this centrally through a dedicated team, freeing the owners to get back to doing what they enjoy most.
- Available buyers – at the moment, there are willing buyers for smaller insurance brokers, but this may not always be the case.
- Future tax regime changes – changes in future to UK tax law may make sales subject to less advantageous tax treatment for sellers.
- Greater size and scale – obvious benefits and "economies of scale" in being part of a larger business with more infrastructure, support and opportunities for cross-selling.
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