Ritz Stevens Next Destination℠

Succession Planning for RIA Owners.

Don’t sell your legacy.

Succession Consulting

You step back on day one. The income and equity don’t.

Succession consulting for advisory firm owners. We build the valuation, the deal structure and the transition plan, we find the successor, and we stay on after the closing.

The path for a $50M AUM RIA to potentially 2X your earnings while never losing the soul of the legacy you created. This is what RIA succession planning should look like. Ritz Stevens builds your financial advisor succession plan and finds the right successor advisor for you, one determined to ensure that what you built lives on the way you intended it to. You don’t fully retire. You hand off to the next generation and keep income coming for years, as part of a financial advisor retirement transition plan built around your timeline.

$50.0M

Starting AUM

1.0%

Advisory wrap fee

12 yrs

Transition horizon

Day one

Founder hands-off

Why This Page Exists

Ann took the first offer she got.

Ann Miller was an advisor we worked with, custodied at Schwab, who made a major mistake. Ann did what most advisors we’ve seen do, take an offer without really speaking to an expert. Years of hard built relationships lost and a reputation bruised when she didn’t know what other options were available.

Our goal is to make sure advisors know what options are available and make it easier to find those options. We build the valuation, the deal structure and the transition plan, we find the successor, and we stay on after the closing.

The Assumptions

What the model holds fixed

Revenue and successor compensation both compound at 6%. Fixed operating costs are held flat on long-term contracts. When the founder converts to a consultant in Year 6, the consulting fee anchors at the prior year’s profit and steps down 10% annually through Year 9, then holds.

Annual growth

6.0%

Successor comp

35% of rev

Fixed expenses

$100,000

Consulting starts

Year 6

Year-6 consulting fee

$310,305

Consulting step-down

10% / yr

Step-down ends

Year 9

Equity at close

90 / 10

The Exhibit

Twelve-year profit & income map

Years 1–5 are the sweat-equity phase: the founder draws the full profit while the successor builds ownership. From Year 6, the founder’s take converts to a stepped-down consulting fee and the residual profit splits by ownership — the successor now sharing in the upside they’re driving.

Yr	AUM	Revenue	Successor comp	EBITDA	Consulting fee	Residual pool	Equity O / S	Owner take	Successor total
1	$50.0M	$500,000	$175,000	$225,000	—	—	90 / 10	$225,000	$175,000
2	$53.0M	$530,000	$185,500	$244,500	—	—	80 / 20	$244,500	$185,500
3	$56.2M	$561,800	$196,630	$265,170	—	—	70 / 30	$265,170	$196,630
4	$59.6M	$595,508	$208,428	$287,080	—	—	60 / 40	$287,080	$208,428
5	$63.1M	$631,238	$220,933	$310,305	—	—	50 / 50	$310,305	$220,933
6	$66.9M	$669,113	$234,189	$334,923	$310,305	$24,618	40 / 60	$320,152	$248,960
7	$70.9M	$709,260	$248,241	$361,019	$279,275	$81,744	30 / 70	$303,798	$305,462
8	$75.2M	$751,815	$263,135	$388,680	$251,347	$137,333	20 / 80	$278,814	$373,002
9	$79.7M	$796,924	$278,923	$418,001	$226,212	$191,788	20 / 80	$264,570	$432,354
10	$84.5M	$844,739	$295,659	$449,081	$226,212	$222,868	20 / 80	$270,786	$473,953
11	$89.5M	$895,424	$313,398	$482,026	$226,212	$255,813	20 / 80	$277,375	$518,049
12	$94.9M	$949,149	$332,202	$516,947	$226,212	$290,735	20 / 80	$284,359	$564,790

Reading the Exhibit

Three things the numbers show

A soft landing, not a cliff

The founder draws roughly $3,331,909 across twelve years while going hands-off from day one — income that tapers gently through the consulting years rather than stopping at a single sale.

Majority ownership, earned

The successor takes home about $3,903,061 in combined salary and profit while building to a 60% stake — acquired through performance, with no cash purchase.

Fixed costs, expanding margin

With expenses held flat as revenue compounds, EBITDA climbs from $225K to $517K — the same operating leverage that funds both parties’ rising take.

The Engagement

What you get, in writing.

The model above is an example, built for a fifty million dollar RIA. Yours gets built on your numbers, and it comes with three other documents.

A valuation range

What the firm is worth, with the comparable data behind it.

A readiness review

What has to be cleaned up before a buyer or a successor looks at the firm, in order.

A deal structure model

Built on your AUM, your fee schedule and your timeline.

A transition plan

The handoff of clients, staff and authority, quarter by quarter.

What This Costs

We’re not a broker and we take no percentage of your deal.

A business broker on a practice sale charges 8% to 15% under a million dollars, and 5% to 10% on larger deals. On a firm worth three million that’s somewhere between a hundred and fifty and three hundred thousand dollars, paid at closing, after which the broker is gone.

Our engagement fee is $5,500, flat. We collect a $550/month retainer once you engage us — fully credited toward that total, and billing stops once $5,500 is reached (about 10 months). Any remaining balance is due once you and the successor sign a letter of intent. We stay involved with the firm after the handoff, and you can cancel the engagement at any time; any retainer already paid is kept.

Broker and M&A advisory fee ranges are published 2026 United States market ranges. Not a representation of results.

Frequently Asked Questions About RIA Succession Planning

What is my RIA worth? RIA valuation typically weighs AUM, revenue mix, growth trajectory, client concentration, and how transferable the client relationships are to a successor. Most owners get a realistic answer only after a formal valuation, which is usually the first step before any sale, merger, or acquisition conversation. More on how a sale actually gets priced is in our guide to selling your practice.

Internal vs. external succession: which is right for my RIA? Internal succession promotes an existing partner or next-generation advisor into ownership over time. External succession brings in an outside successor advisor or acquirer, matched to your firm’s values and client base. The right choice depends on your timeline, whether your team is ready to lead, and how much control you want to keep during the transition.

Do RIAs have to have a succession plan? State-registered investment advisers are generally expected to maintain a written business continuity and succession plan as part of their compliance records, and the SEC has proposed a rule that would require one of federally registered firms too. Requirements can vary by firm structure and AUM, so it’s worth confirming the specifics with your compliance counsel, but having a documented plan in place is table stakes for any RIA considering a future transition.

What does an earn-out structure look like in an RIA sale? Rather than a single lump-sum payment, many RIA sales and mergers pay part of the price over time based on client retention and revenue performance after close. The Ritz Stevens model works differently: instead of a cash earn-out, the founder keeps income through a stepped-down consulting fee while ownership transitions to the successor over several years.

Selling my RIA to private equity vs. an independent buyer: what’s the difference? Private-equity-backed rollups often centralize operations, brand, and investment decisions after close, which can mean less day-to-day control for the founder. An independent acquirer or successor advisor, like the model Ritz Stevens uses, is more likely to keep your firm’s name, team, and client experience intact while you step back on your own timeline.

What does a realistic RIA M&A process timeline look like? Most transitions move through the same broad stages: valuation and readiness assessment, matching with a successor or acquirer, structuring the deal and legal documents, and then a multi-year transition period where the founder steps back gradually. A straightforward RIA succession plan can take twelve to eighteen months to structure, with the handoff itself unfolding over several more years.

When should a financial advisor start planning for retirement? There’s no single right age, but most advisors are better served starting the conversation five to ten years before they want to step back — well before they need an answer. Building a financial advisor succession plan early gives you more exit strategy options, from internal promotion to a full external sale, instead of forcing a rushed decision later.

Ritz Stevens

See what the handoff looks like on your numbers.

We help RIA founders design a handoff that protects the practice, the clients, and the income you spent a career building, and we find the successor who’ll carry it forward.

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