“I recently read a great article with recommendations for people impacted by a company sale. That scenario is happening a lot lately for Insurance Firms- and it’s just going to keep accelerating. There are two ways for an insurance brokerage to grow. One is through organic growth– Producers bringing new accounts into the brokerage and collecting the revenue from the carriers. The second is through acquisitions– Brokers purchasing other brokerages. This second method is the fastest way for an organization to grow– it can drastically affect their revenue, their image can be improved, and the senior leadership can get a nice payout. BUT- it affects each and every employee that is involved.
Recently, we’ve seen a huge push for acquisitional growth in the insurance brokerage marketplace. Why is this? It’s due to several factors, the main being the leadership has a lack of options regarding succession planning. It could be due to the fact they had planned to pass it on to a family member- and there was zero interest. Maybe there aren’t any family members interested in running a complicated business. Or maybe the planned succession chain was broken. Whatever the reason- the decisions made by leadership on succession has a DIRECT effect on the employees of both organizations. So…knowing that your leadership has taken the choice to sell your business- what should you do?
Here are 4 steps I’ve identified that can help guide you through this complicated and unsure future:
Prepare For A Future Elsewhere – (Take a breath…There’s a Lot to Consider First)
The adage goes something like ‘change is often the path to something new and better’. Could the sale of the company put you in a situation that forces you to evaluate your current state and what the future looks like. The situation you face may include some harsh realities. Changes and uncertainties! BUT-
There’s often a natural feeling of uneasiness regarding the future- because it is unsure! As an employee, you’ve probably been loyal to the company for many years and now you’re facing a future that may be quite different than planned. Whether you knew about the sale- the changes that are inevitable will include some surprises. Be flexible, ask questions so you can be clear about how the changes impact you. And plan. Be open to a new and different future. It will be as good as you make it!
Evaluate Your Career Plan
Sit down and take some time to ask yourself ‘where will I be in 1 year? In 3 years? In 5 years? And 10?’ It is likely that with an acquisition, new competition enters your workforce. You might have been in line for a promotion- and now someone with more experience is working for the same company and has the relationship with the new leadership. Maybe your 3-year plan had salary expectations and promises that won’t be honored by the new company. And- sometimes – you might not like your new coworkers. Having all of your goals in place allow you to make the decision if it’s worth it to stay or to explore other options.
Update Your Resume & LinkedIn Profile
Update your resume- BUT DON’T USE COMPANY COMPUTERS. Updating your resume is a key step in planning for the future. We can help guide you with what looks good on a resume. We’ve had everything from scented resumes to resumes done in an elementary-looking cursive font to hand-written resumes that are border-line illegible. We can help show you what is valuable to a future employer.
Updating LinkedIn is something you should regularly be doing, but update with accurate dates, job titles, and descriptions. If you don’t have a LinkedIn- get one. It is GUARANTEED that any future employer will verify and check your LinkedIn. Make sure that the dates match your resume! It is also helpful if you have a few coworkers go in and add some recommendations and comments to your page!
Know Your Current Benefits & Comp Package
Do you know who holds your 401k? Do you know who your health carrier is, and what doctors are covered? It is likely with any acquisition that you will see a change in this. Rarely do two different companies offer the exact same benefits package. Knowing what money/benefits you have where can help. We recommend visiting with a financial fiduciary expert who can help guide you here. Just like having an Executive Insurance Search Consultant can be beneficial, so can a financial expert. Know what you have- and where you have it.
Regardless of whether you choose to stay, you need to manage your risk. You help your clients manage theirs by protecting their future from uncertain and unpredictable events. We want to help you do the same. Let us ‘risk manage’ your future. Hopefully you won’t have to use the plan. But- if you do- you will be prepared. That’s my who goal with what I’ve chosen to do with my life- help you be prepared for the future.
This is where my team and I come in. As Executive Insurance Recruiters, we help people in this situation every day. We guide Insurance professionals through the local job marketplace- CONFIDENTIALLY. We help you access leadership within the firms you will want to meet, many of whom are quietly hiring for your level of experience. We can help you achieve your plan for the right next step. Reach out and let’s connect.
McKay Tripp
Call/Text: 801-716-5925, mckay@sanfordrose.com
The Newman Group is the Commercial Risk & Insurance Search division for Sanford Rose Associates. Sanford Rose Associates has more than 130 Offices worldwide and has been recognized for more than a decade as one of North America’s Top 10 Search Firms by Executive Search Review. The Newman Group is an industry leader and is known for working with major insurance groups to build powerful teams who maximize results for their firms.
PS Here’s a link to the NerdWallet article that got me thinking – https://www.nerdwallet.com/blog/finance/employer-acquired-now/
