succession planning for insurance professionals...© 2017 fp transitions, llc. 12. succession...
TRANSCRIPT
SUCCESSION PLANNING FOR INSURANCE PROFESSIONALS
DAVID GRAU SR, JDPRESIDENT, FP TRANSITIONS
1) BUILD A SUSTAINABLE BUSINESS2) STRUCTURE FOR GROWTH3) CRAFT A SEAMLESS TRANSITION
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WHAT HAVE YOU BUILT?
Book Agency Business / Firm
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A SUSTAINABILITY CHALLENGE: PREVENTING BRAIN DRAIN
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A SUSTAINABLE SERVICE MODEL
Structure your business and its organizational, entity, and compensation systems so that there is no way for an individual to do well unless the organization succeeds as a whole.
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G1
G2 G2
G3G3G3
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STRUCTURE A SUSTAINABLE TEAM
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G2 G2
G3G3G3
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IDENTIFYING TALENT FOR A SUSTAINABLE TEAM
Underwriter | Customer Service | OrganizerRepresentative
Entrepreneur
Producer | Underwriter
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THE STRUCTURE FOR SUSTAINABILITY AND GROWTH
ORGANIZATIONAL STRUCTURE
ENTITY STRUCTURE
COMPENSATIONSTRUCTURE
PROFIT & GROWTHSTRUCTURE
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THE CASH FLOW AND COMPENSATION
Revenue AssignedInto Entity Structure
Expenses
Wages, Compensation ENTITY
STRUCTURE
Profit Distributions
(perform 3 functions)
Equity Income
Equity Value
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EAT WHAT YOU KILL V. EQUITY COMPENSATION
Gross Revenue: $ 1,000,000
Expenses: $ 500,000
Comm. Share / EWYK: $ 500,000
Profit: $ 0
Gross Revenue: $ 2,000,000
Expenses: $ 700,000
Salaries / Comp: $ 700,000
Profit: $ 600,000
COMMISSION MODEL EQUITY MODEL
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SUCCESSION PLANNING SCHEMATIC
Res
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20 25+NOW 5
Time (in years)
10 15
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SUCCESSION PLANNING SCHEMATIC
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Time (in years)
10 15
BANK FINANCING
Update Bylaws, Buy-Sell Agreement Hybrid-note structure Fixed or Hard-Note structure
Discount applied; Profit-based note
Bank Financing
G2: Planned Owners
G3: Potential Owners
G1: Founding Owners
THANK YOU
www.fptransitions.com(800) 934-3303
www.oakstreetfunding.com (866) 625-3863