Room at the Top: 2,000 finance broker firm leaders could exit profession in next few years

Room at the Top: 2,000 finance broker firm leaders could exit profession in next few years 

Almost 2,000 finance broker leaders have just a few years to plan for succession and pass on their valuable expertise as retirement approaches, according to data analysis by MAF Finance Group.

The asset finance broker, which is part of the Begbies Traynor Group, found that 1,856 firms are led by someone over 65, meaning a significant amount of valuable leadership and finance broker expertise is set to leave the market soon.

This wave of leavers is exacerbated by the number of leaders choosing to exit the market through a solvent liquidation. In 2024, there were 839 solvent liquidations in the financial services sector, a 29% increase on 2023 (650).

Dave Chapman, Managing Director at MAF Finance Group, said:

“We know asset finance brokers form long-term, close-knit bonds with their clients. They understand client businesses, including the long- and short-term goals of the organisation as well as what is needed to reach those goals. Asset finance brokers then work with the appropriate funder(s) to structure the right solution to meet the needs of the business and to help them grow. They can bridge the gap between the work the business does and the many funders that can help them keep doing that. We know this because it is the way that MAF operates and has done from the very start. With so many leaders nearing retirement and hundreds having wound their operations down in 2024, businesses are at risk of losing this knowledge and guidance if there is not a succession plan in place for that client book.

“We are seeking to partner with asset finance brokers taking the next steps to retirement or wanting to wind down. We can work with these asset finance brokers on a planned and structured basis, so clients continue to get the broker support they need and the broker enters into a fee sharing arrangement through to retirement and beyond.”