In the insurance agency business, perpetuation often has a partner and that's retirement, and that may be a problem, especially if the retiree is the agency owner who in the course of a career has attained a solid and respected name in the community, and does not want to see that name or reputation spoiled. For such an agency owner successful perpetuation is a major factor to successful retirement. But achieving that objective is not an easy thing. Moat, who outlined various factors to be considered in the perpetuation process at the 64th annual convention of the National Association of Professional Insurance Agents in August, has more than 40 years of experience in insurance and financial services. In order to ensure agency perpetuation, the owner can't decide overnight that it's time to wrap it up, pack it in, sell out and get out of the business.
Moat points out there are all sorts of factors to consider before an agency owner can pack it in.
And only a part of the decision involves what the owner is going to do in retirement. A major consideration for an agency owner is whether or not there is a family member available to take over the business and operate it in the same manner that had made the original owner successful. It makes no sense to force the business on a son, daughter or other relative who has no interest in its continuation. Any family member must also be capable of not only running the business, but expanding and building it further as well as dealing successfully with the existing employees. In addition to availability and capability, the family member who takes over the business must be accepted by other family members, including spouses, and the remaining employees of the firm.