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Perpetutation presentation

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Perpetuation Meeting Slide Show April 17, 2019

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Perpetutation presentation

  1. 1. John Biasiello President Sukay & Associates
  2. 2. QUESTION? What Might be the Single most Important Decision of your Career? ANSWER: “Perpetuation!”
  3. 3. "ALL PROGRESS TAKES PLACE OUTSIDE THE COMFORT ZONE." ……MICHAEL JOHN BOBAK
  4. 4. What are we going to talk about today? • Current State of the Market Place. • Why do Agency owners wait so long? • Internal vs. External Perpetuation • What are the important considerations of a Perpetuation Plan?
  5. 5. Current State of the Market • All projections show that the Consolidation will continue! • Private Equity is still finding new partners to enter the market. • Established Buyers vs New Entries. • Interest Rates Matter. • Carrier Partners have also helped the Consolidation. • Agency owners have a strong sense of Independence.
  6. 6. Why do Agency Owners Wait So Long? • They Love What they Do!!! • Too Much on their Plate. • They believe strongly in staying Independent. • What they are is Who they are. • They are not sure about how to take that first step.
  7. 7. Internal Perpetuation - Positives • The Agency Remains Independent. • The New Management is a known entity. • Not much changes for the stakeholders. • It should be easier to accomplish because the parties know each other and they understand the business.
  8. 8. Internal Perpetuation - Challenges • The Value and Structure is usually different. • Do the potential new owners have the ability to purchase the business? • Do the potential new owners have the ability to continue to keep, grow, and invest in the business? • If it is Family are you prepared for Thanksgiving Dinner? • It usually is not easier because getting through the process can cause hard feelings. • What happens if the new owners fail? The Risk is real.
  9. 9. External Perpetuation -What do Sellers Want? • They want to take equity off the table. (The more upfront the better) • They want to remain as independent as possible. • They want better access to markets for their clients. • They want security and opportunity for all stakeholders. • They want a seat at the decision making table.
  10. 10. External Perpetuation - What do Buyers Want? • Growth, Growth, Growth • Owners and Management that will continue with the business and want skin in the game. • Synergies. • Location/Market • Specialties/Niche
  11. 11. What is life like after a Sale? • It Depends! • Surprising for Most. • Finding the right Partner. • Starting off with the right attitude. • Doing the things in your life that made you successful in your business.
  12. 12. What are the important considerations of a Perpetuation Plan? • Consider what is going on in the market around you. • Can you remain Independent and Competitive? • Will the Carrier Partners Support your Effort? • Are you considering All the Alternatives? • Understand the Real Value of Your Business. • Speak to your peers. Especially the ones that have been through the process. • Understand the risk of not having a plan on all your stakeholder. • Hire a good Advisor that will put Your interest before their own. • Speak to your Potential Successors both internal and external.
  13. 13. "THE WAY TO GET STARTED IS TO QUIT TALKING AND BEGIN DOING." ... WALT DISNEY
  14. 14. Questions/Comments John Biasiello President Sukay & Associates, Inc. 215-208-8519 jbiasiello@sukayassociates.com www.sukayassociates.com

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