The role of succession planning in future-proofing the UK’s SME marketplace is a concern voiced by government, trade associations and thought leaders alike, particularly following the wave of workers who took early retirement during the pandemic. It’s a particularly timely warning to the insurance broking marketplace, too, as it is facing ongoing concerns around the attraction and retention of great talent.
But how can insurance brokers put in place robust, serviceable succession plans that will protect their current staff and customers while equipping the business for future growth? It was the ex-Xerox veteran Anne M. Mulcahy who pinpointed the need for succession planning to be so “gradual and thoughtful” that, “it’s almost a non-event when it happens” – an approach taken to heart by Hallsdale Insurance Brokers co-founder, Simon Drysdale.
Founded in 2007 by Drysdale (pictured above left) and then co-director Tom Hall, Hallsdale sold a 30% stake in the business to The Broker Investment Group (TBIG) in March 2018, the start of a partnership that reached its natural conclusion in July when TBIG took over full ownership. Under the terms of the deal, Drysdale will remain with the business with fellow director Angela May (pictured above right) taking over as managing director.
The move was an organic next step in the succession planning that has been integral to the firm’s success to date, he said, with the decision to sell to TBIG the result of careful consideration by both him and May.
“When it was time to have a discussion with regards to lining up exit plans for the business, Angela and I had several sit downs over the last 18 months to two years with regards to what that would look like,” he said. “We had discussions with a number of different people and parties and eventually the discussion led us back to the people who already had 30% of us and who we had already established we worked so well with.”
For May, who came to Hallsdale in 2011, having already worked with Drysdale and Hall throughout her time in the UK broking market, the decision made logical sense. TBIG is a good group of people, she said, and having worked with them for five years, it was clear that not only was the deal a great cultural fit but would also provide a stable platform to pursue future growth.
A key consideration for Drysdale and May was that the deal will see Hallsdale’s team remain with the business and its premises remain unchanged. That was important not just for the staff concerned, Drysdale said, but also for the brokerage’s clients who place real value on business continuity and the relationship they have with their broker.
While other companies look to roll you into their wider proposition, May said, it was great to see TBIG’s commitment to allowing Hallsdale to retain its name and branding, which is a key differentiation of the business within its local community. Touching on the power that a local insurance brand still holds within communities, she noted that there are not a lot of independent brokers around anymore.
“I think having an insurance broker like us, who’s not a corporate body, but is operating within the local area is a massive hit,” she said. “And I think there’s still a lot more out there for us to do in terms of marketing and rebranding, to get our name out there to people that don’t yet know us, but want to get to know us.”
Great succession planning is the key to keeping the name and spirit of a local business alive and Drysdale shared some of his top tips on how brokers can get this critical element of their business continuity plans done right. His top advice for brokers, he said, is to have these conversations as early as possible.
“So, the first thing is, talk early,” he said. “We’ve been able to do this so successfully by talking about it extremely early. Tom and I set up the business in 2007 but probably five or six years after that we were already both talking about it. When we started, we had two people in the business who were older gentlemen who then exited the business.
“Bringing Angela into the business was a key part of our succession planning because they had business accounts, that Tom and I couldn’t necessarily take on. So, bringing Angela on to take on those accounts and continue those client relationships, was all part and parcel of the journey. So, my advice is, just sit down and talk about what it’s going to look like.”
Great succession planning has to work for everybody involved, May said. It’s important for the people that are looking to retire but it’s also important for the people who will be remaining with the business to know they’re going to be in safe hands. The right succession plan has to be the best fit for the entire team.
“It’s so important to make sure you get the right people in,” Drysdale said. “And then you’ve got to share your vision with them and trust them with that vision. I think sometimes that’s an issue within broking, you’ve got the directors at the top running the business and the like, but they need to be encouraging people to come through the business.
“And there’s got to be vision on both sides as well. Because the people who are looking to move up need to understand the level of commitment required to that particular brokerage. If they can see a path, they need to stay within that business and fulfil the path that is laid out for them, which is why communication between the directors of the business and the up-and-coming young guns is so important.”
Having a vision for the future is critical, May said, and she’s excited by the new avenues opening up to Hallsdale under the ownership of TBIG. In the Press release accompanying news of the deal, TBIG CEO Dave Clapp hailed the acquisition as the “perfect fit” and identified the group’s commitment to generating “exponential growth” over the next five-to-10 years, while its in-house marketing consultant works on a plan to attract new customers in the Midlands region and beyond.
“They’re investing in us as people,” May said, “and they know we’ve got the passion and the drive to succeed so, with their support, I think we’ll do really well. For me, the next steps are all about growth and we’ve got some exciting plans in place at the moment to make things bigger and better. Service for our clients and making sure we are professional, hardworking and doing the best for them is always top of the agenda. But I think the time for growth is now.”
For Drysdale, remaining at the forefront of the business, and helping to oversee its development and growth is the name of the game.
“I’ve always said it, I’m still enjoying what I’m doing,” he said. “I’m enjoying the job and meeting my clients and doing insurance for them, and a lot of them have become friends over the years, and I enjoy working with Angela. I’ve got no reason to stop doing what I enjoy, so I just want that to continue. Hallsdale Insurance Brokers is very close to my heart and having seen it start up in 2007, I just want to see it go from success to success. And I feel I can still be part of that journey – not forever, but for a while longer.”
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