“Succession shouldn’t be a last-minute transaction. It should be a long-term evolution.” – Melissa Sloane
Purposeful succession in a $500M RIA
Learn how an established independent RIA in Florida used practice management tools and techniques to identify and prepare a successor, transition equity and leadership over time, support continuity of client experience and align a multi-generational team around shared values as she approached the transition of her practice.
A Q&A with Melissa Sloane, Capital Group senior vice president and division manager, Southeast Division
Q: What set this succession plan apart?
Most advisors begin thinking about succession when retirement is near — or when circumstances force their hand. This founder started 10 years in advance. She wasn’t just thinking about the next leader — she was planning for continuity of values, culture and client experience.
Q: How did she structure the succession?
The founder named her successor a full decade before stepping back. He was an experienced advisor who shared her client philosophy and brought complementary skills. She gave him a 35% equity stake early on, with a structured plan for gradual ownership over time.
The buyout was phased, which allowed her to stay engaged — providing strategic input and maintaining client relationships — while he gained visibility and trust within the firm.
Clients were introduced to him gradually. He wasn’t positioned as a replacement, but as a collaborator. By the time the founder stepped away, the transition felt natural to everyone involved.
“I wasn’t stepping out. I was stepping to the side — to make space for what’s next.” – Founder
Q: How did they manage generational differences?
This is a common friction point in succession. Generational gaps often show up in leadership styles, priorities and approaches to growth. But in this case, those differences became a productive part of the process.
The founder and successor made time for candid conversations early on — aligning around values like trust, integrity and long-term client focus, even if their styles differed.
He took on more operational responsibility over time, while she continued serving clients directly. He introduced new tools and investment depth, helping the firm evolve without losing its identity.
“I didn’t need to become her. I needed to carry forward what she built — with my own tools.” – Successor
Q: How did segmentation play a role in the transition?
The founder recognized that not every client relationship still made sense for the firm’s future direction. She reviewed her book and identified a segment — roughly $40M AUM — that no longer aligned with the business strategy.
Rather than hold on out of habit, she sold that segment to a like-minded advisor, ensuring clients were transitioned respectfully and thoughtfully.
This move gave the team more focus, allowed the successor to lead with clarity and created space to serve core clients with greater intention.
“It wasn’t just about who we served — it was about how we showed up for the ones who mattered most.” – Founder
Q: What’s the big takeaway for other advisors?
This founder didn’t view succession as a transaction. She saw it as a long-term responsibility to her clients, her team and the firm’s future. She acted early, planned carefully and remained engaged throughout.
The result? Smooth leadership handoff, strong retention and lasting alignment. Her approach shows what’s possible when succession is treated as an ongoing part of business strategy — not a one-time decision.
“She gave her firm a future — and gave her successor the runway to lead it with confidence.” - Melissa Sloane
Note: This case study is drawn on real-world experience but is for illustrative purposes only.
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