The Art of Succession: How HB Wealth’s 12-Year Plan Defied Industry Odds
Succession planning in the wealth management industry is a bit like trying to solve a Rubik’s Cube blindfolded. It’s messy, often unsuccessful, and rarely discussed openly. Yet, HB Wealth, an Atlanta-based RIA, managed to crack the code with a 12-year succession plan that feels almost revolutionary in its foresight. What makes this particularly fascinating is how they didn’t just plan for leadership transition—they reimagined the entire structure of ownership and growth.
The Industry’s Succession Blind Spot
Let’s start with the elephant in the room: succession planning is a disaster in this sector. According to Charles Schwab’s benchmarking survey, only 45% of firms under $250 million have a written plan. Even among larger firms, it’s barely better. What many people don’t realize is that this isn’t just a logistical issue—it’s a cultural one. The industry is founder-led, and founders often equate their identity with their firm. Stepping back feels like stepping into the unknown.
HB Wealth’s story is a rare counterpoint. When co-founder David Homrich left in 2001, the firm could have crumbled. Instead, Andy Berg, the remaining co-founder, did something bold: he started planning 12 years in advance for his own exit. This wasn’t just about finding a successor; it was about building a system that could outlast him.
The 12-Year Plan: A Masterclass in Foresight
Here’s where it gets interesting. Berg’s plan wasn’t linear—it was layered. The first four years were about identifying a successor, the next four about handing over the reins, and the final four about transitioning to a board role. This phased approach is genius because it acknowledges the psychological and operational complexities of letting go.
Personally, I think this is where most succession plans fail. They treat leadership transition like a sprint, not a marathon. Berg’s plan allowed for trust-building, skill transfer, and cultural alignment—elements often overlooked in rushed transitions.
Equity Sharing: The Secret Sauce
One thing that immediately stands out is HB Wealth’s commitment to broad equity distribution. This isn’t just a perk; it’s a core philosophy. By sharing equity with advisors and employees, they’ve created a vested interest in the firm’s long-term success. This is a stark contrast to the industry’s trend of private equity firms swooping in for majority stakes.
What this really suggests is that HB Wealth understands something deeper: ownership breeds loyalty. When employees own a piece of the pie, they’re more likely to stay, innovate, and advocate for the firm. It’s a win-win that’s surprisingly rare in this space.
The Minority Stake Strategy: Control Without Compromise
HB Wealth’s decision to sell minority stakes to New Mountain Capital and TPG Growth is another masterstroke. They managed to raise capital while retaining majority control and their fee-only business model. This raises a deeper question: Why do so many firms give up control for cash?
From my perspective, HB Wealth’s approach is a lesson in negotiation. They were clear about their non-negotiables—fee-only structure, employee ownership, and operational autonomy. By finding partners who respected these principles, they avoided the pitfalls of external investment.
The Human Factor: Why This Matters
If you take a step back and think about it, HB Wealth’s success isn’t just about numbers or strategies—it’s about people. Their 100% W-2 employee model and focus on integration (not aggregation) reflect a commitment to unity. This isn’t just a business model; it’s a culture.
A detail that I find especially interesting is their 99% client retention rate. In an industry obsessed with acquisition, HB Wealth’s focus on existing clients is refreshing. It’s a reminder that growth isn’t just about scale—it’s about depth.
Looking Ahead: What This Means for the Industry
HB Wealth’s story is more than a case study—it’s a blueprint. It challenges the industry to rethink succession planning, ownership, and growth. Personally, I think their approach could inspire a wave of founder-led firms to plan for the future without sacrificing their values.
But here’s the kicker: this model isn’t easy to replicate. It requires discipline, foresight, and a willingness to share power. Not every firm is ready for that. Yet, for those who are, HB Wealth proves that succession planning can be a catalyst for growth, not a hurdle.
Final Thoughts
HB Wealth’s 12-year plan isn’t just a strategy—it’s a philosophy. It’s about building a firm that lasts beyond its founders, a culture that values shared ownership, and a legacy that prioritizes clients and employees. In an industry rife with uncertainty, their story is a beacon of clarity.
If there’s one takeaway, it’s this: succession planning isn’t just about who takes the helm—it’s about how you steer the ship long after you’re gone. And in that, HB Wealth has set a new standard.
