WDC Acquisitions: Four Takeaways

As many of my loyal readers are aware, there has been a wave of acquisitions during the past two years in the insurance brokerage industry here in the WDC regional market.

Workers are concerned.  They are worried if they will have a job in 30 days.  Restructurings happen fast.  You could be celebrating a big win, and by the end of the day, you’re being escorted out the front door.  Happened this past Friday to long-time insurance friend of mine in Richmond.

So how does one protect themselves from an acquisition?  Or can it be a wonderful opportunity?

Here are a few things to consider:

Your duties and responsibilities will probably change.  Do you have the tools to reinvent yourself or perhaps work in a different, but similar functional area?  If your department is being eliminated and you are in a sales producer role, could you transition to an account executive role in a different department? Could you position yourself to manage both personal lines and commercial lines?

Action:  Assume your firm will someday be acquired or restructured.  Private equity is becoming an increasingly bigger play in the insurance brokerage sector.  Continually expand your tool box in terms of professional training, certifications, and, overall, make it a point to understand what is happening in other departments.  If you are in commercial lines, talk with your private client or personal lines counterparts and vice versa. There could be a dual-purpose role for you in the future.

Your position and department may be eliminated.  With every acquisition, comes layoffs. This is a fact of life. Have you stayed in contact with an industry recruiter?  Do you have options?  Are you well-networked in your specific professional community?

Action:  One of the best ways to professionally network in the insurance community is through continuing education.  You will not only increase your value, but as important, you will meet your contemporaries from competitor firms.  People you meet in these classes could be your first call if you were to lose your job. Insist from Day One, that you are able to attend continuing education classes.

You will get a new boss.  This new boss will most likely have a new vision for the department.  New goals.  New metrics.  You may keep your job, but everything could change.

Action:  Be prepared to start looking for a new job.  A new boss will not only bring their new ideas, but their own people.  It will not be immediate, but more likely a slow process that takes place over 18 months. Chances are they had a previous staff with some trusted individuals they want to surround themselves with.  Don’t wait to be the sucker shown to the door on the Friday before Christmas.  The day your new boss shows up, you (confidentially) start looking at your career options.  Smart people do this.

Stress Levels and Uncertainty will prevail.  Many workers will fall into a depressed and destructive state of mind.  People will talk.  People will complain.  Be prepared for a lot of misinformation and rumors.

Action: Acquisitions are always messy.  Very rarely are the communications clear and consistent regarding the new regime.  What happens?  The rumor mill takes over.  It’s good to listen, but don’t assume anything is 100% true.  Most of what you will hear will be an exaggerated version based on an initial kernel of information.  Don’t waste your time on trying to control what is out of your control.  It will become a constant source of frustration. If you want to stay, then take a more positive attitude and people will notice. You could become a future star player!

Final Take:  Preparation is the ultimate key to surviving and thriving in an environment of acquisition.  It may be the worst or best thing that ever happens to you depending on your personal perspective and how you have planned from the beginning.  Get clear on what you want and put a plan in action to make it happen.