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ISCOVER
Every broker knows the value of long-term planning — except when it comes to their own exit. As the mortgage broking industry grows and matures, Ash Playsted urges brokers to consider what happens to their business when they step away.
Over the past few years, one question has emerged more frequently than any other: “What is succession planning?” My answer is always the same: a good succession plan asks and answers the critical business, personal, and financial questions that arise during a business transition. Yet, more often than not, this response is met with blank stares and more questions.
This highlights a pressing issue within the mortgage broking industry. While brokers have successfully navigated changing regulations, increasing compliance demands, and evolving client expectations, many are neglecting one fundamental challenge—what happens to their business when they step away? The growing trend of mergers and acquisitions (M&A) in our industry makes this question more urgent than ever.
The Unspoken Challenge: What Happens Next?
Mortgage broking has always been more than just a profession to me; it’s a calling built on trust, relationships, and a dedication to clients. Many brokers have spent decades building their businesses, yet few have a structured plan for what comes next.
Will the business continue to thrive, or will it slowly unravel? Without a clear succession strategy, even the most successful brokerage can suffer from declining value, lost client goodwill, or a rushed and underwhelming exit.
Succession planning is not just about selling—it’s about ensuring continuity, maintaining client relationships, and securing the financial rewards that years of hard work deserve. Yet, too many brokers delay planning, caught up in the daily demands of running a business. The danger? By the time they recognize the need for a strategy, it’s often too late.
Why Succession Planning Matters More Than Ever
The mortgage broking industry is maturing, and with that comes consolidation. The era of small, independent brokerages operating in isolation is fading. Larger firms, aggregators, and private equity groups are actively seeking acquisitions. This presents opportunities for prepared brokers but challenges for those who are not.
A business without a structured transition plan, documented processes, and a scalable model is far less attractive to potential buyers and investors. Many brokers risk undervaluing their businesses simply because they haven’t prepared.
The M&A Landscape: Key Considerations for Brokers
Several factors are driving the acceleration of M&A in mortgage broking:
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Rising Compliance Burdens – Regulatory requirements continue to evolve, making it harder for smaller operators to keep up. Many brokers are finding that merging with larger groups eases the burden of compliance management.
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Technology and Scale – Larger brokerages are investing heavily in automation, data analytics, and CRM systems. Independent brokers who don’t keep pace risk falling behind and losing competitiveness.
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Changing Client Expectations – Clients increasingly expect more than just a mortgage solution; they want integrated financial services, including wealth planning and insurance. Businesses that can offer comprehensive advice have a clear advantage.
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An Ageing Broker Population – Many experienced brokers are approaching retirement, yet few have a clear exit plan. Without a structured transition, years of effort could be lost, and financial outcomes may fall short of expectations.
For brokers who haven’t considered their future, these trends make one thing clear: taking control now is essential. Without proactive planning, external circumstances will dictate the outcome.
Preparing for Succession: Essential Steps
A robust succession plan takes years to develop and execute. Here are key steps every broker should take:
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Start Early – The most effective succession plans are built over time. Preparing in advance allows for better business structuring, value maximization, and a seamless transition.
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Build a Business, Not Just a Job – Buyers want a business that can function independently of the owner. Documented systems, strong client retention strategies, and a capable team are essential.
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Understand Your Business Value – Many brokers overestimate their business’s worth. A professional valuation, considering client book quality, revenue diversity, and operational efficiency, is crucial.
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Identify and Develop a Successor – Whether selling to a competitor, merging with a larger firm, or transitioning internally, having the right successor in place ensures continuity.
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Plan for a Gradual Exit – A structured handover period helps ensure a smooth transition. Whether selling outright or stepping back from leadership, remaining involved during the transition reassures clients and staff.
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Create a ‘Life After Exit’ Plan – Surprisingly, nearly 80% of business sellers experience regret, primarily due to a lack of planning for life beyond their business. Having a vision for what’s next is critical for a fulfilling transition.
A Call to Action: Future-Proofing Your Business
Succession planning isn’t just about retirement or your next opportunity—it’s about protecting the value of what you’ve built, ensuring continued service for your clients, and maximizing your financial outcome when you decide to step away.
The mortgage broking industry is evolving, and those who take proactive steps today will be best positioned for future opportunities. Whether through an internal transition or an acquisition, one thing is certain: leaving your future to chance is not an option.
So, I challenge every broker to ask themselves: What will my business look like in three, five, or ten years? More importantly, will I be the one shaping that future—or will it be decided for me?
Ash Playsted is the general manager of broker performance at Recludo Group.
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