Keeping it in the family
McLardy McShane is growing as fast as ever – but with the next generation increasingly involved, its founders aren’t looking to sell
By John Deex
The co-founders of McLardy McShane reckon they are asked “every day” whether the fast-growing and diverse insurance group is for sale. Launched in Melbourne in 2007 with just a handful of staff, it’s now a significant national player with 130 authorised representatives, 26 broking branch joint ventures, and almost $680 million in annual gross written premium.
But despite experienced chief executive Don McLardy and director Mike McShane entering the final phase of their careers, selling up is not part of the plan.
Three of Mr McLardy’s children now hold critical roles within the business. Nick McLardy is national manager of broking, Tim McLardy is general manager at Victory Funding (the company’s premium funding operation), and Sarah McLardy heads up people and culture. Mr McShane’s daughter Georgia McShane is an account executive.
From left: Tim McLardy, Sarah McLardy, Don McLardy, Mike McShane, Nick McLardy and Georgia McShane
Being a “family-based business” brings many advantages, Mr McLardy says, and with the next generation stepping up, there’s no reason why that can’t continue.
“Most of the competition are big corporate entities,” he tells Insurance News.
“They’ve got different things they have to respond to, like returns to shareholders and public company issues. But we can still make decisions based on people and relationships and things that we value. So we love that situation that we’re in, and we love the fact that we can say that we don’t want to sell our business. We want to develop it, and keep it as a family business.”
Both co-founders intend to continue working for as long as good health allows, but in increasingly “ambassadorial” roles.
Mr McShane believes that an “orderly handover” is key. “The initial feeling is, the world will stop when I stop dealing with my clients. But you soon realise that isn’t the reality. [A handover] makes perfect sense, because we’re not around forever, and typically our clients have done the same thing with their children.”
Viewers of the HBO smash series Succession have been reminded that such handovers can sometimes be anything but orderly. But there are no Machiavellian manoeuvres or bitter sibling rivalries here.
“We’re lucky that all of our kids actually get on very well,” Mr McLardy says.
“We’ve got a close family, Mike’s got a close family. We’ve all known each other growing up. So I don’t feel there’s any animosity or any pressure between them, or between us and them.”
“I call the older group Jurassic Park. We’re the dinosaurs, and we’re very conscious of that.”
Don McLardy
Where generational differences of opinion have emerged, a mix of fresh ideas and experience has resulted in balance, and compromise.
Sarah McLardy worked on women’s rights in New York for almost a decade, including for the United Nations, before heading home last year. She believes that, far from being a hindrance, it’s beneficial to have a family member in her role.
“I can challenge [the directors] more freely than most people would want to,” she tells Insurance News.
A recent debate around flexible working is a good example, with the older generation keen to preserve a unique company culture built in an office environment, and the younger ones focused on the importance of flexibility. A hybrid model was the eventual outcome.
“I affectionately call the older group Jurassic Park,” Mr McLardy says. “We’re the dinosaurs, and we’re very conscious of that. With that comes lots of experience, lots of things that you can pass on. But we’re also reminded quite clearly from the younger troops about how things have changed.”
Nick McLardy was the first to come into the fold, after learning the ropes under renowned Melbourne broker Barry Fitzpatrick. He says growing up he was focused on sport and “not too worried about what Dad was doing”.
But he doesn’t regret joining an industry that provides access to the corporate world without tying you to a desk. “I learnt from the base level of claims and, since then, worked in different roles throughout our own business. It’s been a good way to see all areas and avenues and departments of an insurance broking business.”
Tim McLardy, who studied finance and initially worked in commercial property, admits he “wasn’t convinced” he wanted to be an insurance broker, so when the company acquired Victory Funding it provided a perfect alternative.
“It was a case of good timing, really. I probably always had an attraction to come back to the family business and [Victory] was, from the outset, a good fit.”
Georgia McShane didn’t expect to follow in her dad’s footsteps, but she’s enjoyed the experience – particularly as the company has grown and attracted other people her age. “I didn’t really know what to expect, but it’s a great culture,” she says.
The whole group travelled to London earlier this year, visiting Lloyd’s and hosting a cocktail party for 50 guests. The trip highlighted the significance of the global insurance industry, and importance of insurance professionals.
“That was a massive difference that I saw in London. [Insurance] is a really well-respected career over there,” Ms McShane says. “Not that it isn’t here, but people have a different outlook. I don’t think my friends have any understanding of what a broker does.”
For Mr McLardy and Mr McShane, there’s great pride in watching their children – and other young people at the company – grow into managerial roles. It enables them to step back, and provides a vision of the future that doesn’t require selling to one of the corporate giants.
“The question we constantly get asked is whether we’re going to sell,” Mr McLardy says. “We keep saying, why would we? We’ve got something we think we can leave with the kids to keep developing … We’re all happy, loving our work. Why wouldn’t you keep going?”
