Q&A: How a 12-Year Succession Plan Helped HB Wealth Grow

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It's hard to spell for a period successful the registered concern advisor assemblage without a caller study detailing the situation of succession readying successful this founder-led, client-driven industry.

Just instrumentality this week. According to Charles Schwab's yearly RIA benchmarking survey, conscionable 45% of firms with nether $250 cardinal successful assets nether absorption person a written succession plan. The figures are somewhat amended for firms implicit $250 cardinal astatine 65%, and are highest for Schwab's top-performing firms, identified by a bid of 15 factors, astatine 77%.

At HB Wealth, an Atlanta-based RIA founded successful 1989, the firm's succession strategy didn't look truthful wide aft its archetypal decade. In 2001, steadfast co-founder and CEO David Homrich departed to tally AMB Group, an concern and wealthiness manager for lawsuit Arthur Blank, the co-founder of Home Depot.

How did the steadfast negociate done specified disruption? According to existent CEO Thomas Carroll, it was done forward-planning by the remaining co-founder, Andy Berg.

Having seen disruption astatine the apical firsthand, Berg yet enactment unneurotic a 12-year succession program that not lone included his pathway retired of moving the steadfast but besides a absorption connected equity-sharing with spouse advisors.

That program led to Carroll's assignment arsenic CEO successful January 2024. In the people of that year, helium oversaw the firm's merchantability of its 2nd number involvement to TPG Growth, arsenic good arsenic its largest acquisition, a $6.4 cardinal multi-family bureau based successful Tyson, Md.

Last year, the steadfast rebranded from Homrich Berg Wealth Management to HB Wealth. It has besides continued to grow its work offerings—just this week announcing a caller part focused connected organization advisory and an OCIO offering.

Wealth Management recently spoke with Carroll astir the firm's maturation and continued absorption connected sharing equity among employees.

The pursuing has been edited for magnitude and clarity.

Wealth Management: Tell maine astir HB Wealth's roots.

TC: We were founded successful 1989 by 2 ex-CPAs who wanted to permission the signifier of accountancy and commencement an autarkic wealthiness absorption firm. The RIA was not truly a happening successful 1989, truthful they were a small spot up of their time—trailblazers successful immoderate respects. They started it with a indebtedness from 1 of the founders' fathers. Fast guardant 37 years, and we're astatine astir $32 cardinal successful assets, 350 employees and thousands of clients. We started successful Atlanta, and that's inactive our headquarters. The immense bulk of our teammates reside here, and successful caller years we've started to grow geographically.