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In this installment of our succession series, we show how succession planning, valuation, and M&A readiness moved a founder led RIA from first conversation to full transition in four and a half years.

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​Where It Started (and Stalled)

In 2020, Blue Ridge Capital Counsel in Raleigh managed 265 million dollars for 360 households. Three emerging leaders handled most client work, but the partners were not aligned on price, timing, governance, or cash flow. A rollup bidder offered 8.6 times adjusted EBITDA with a long earnout, which raised culture and integration concerns. Graybridge Advisory was engaged to structure an internal path while keeping an external option prepared.

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We anchored negotiations with a formal valuation using income and market approaches, then launched a small pilot ownership round of ten percent split evenly among the three leaders. Pricing was based on trailing twelve month EBITDA with a clearly disclosed minority discount. Funding combined cash at close and a five year seller note at SOFR plus three percent, serviced from distributions and protected by coverage covenants. We coupled the stake with a ninety day operating plan, CRM standards, a weekly pipeline review, a monthly partner pack, and light M&A readiness with a clean data room, a diligence list, and a sell side rehearsal.

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After fourteen months, new money pace doubled, net promoter score rose from sixty one to seventy eight, and operating margin widened by two hundred forty basis points despite interest costs. An updated valuation and a quality of earnings bridge supported Stage Two, moving another thirty five percent to the same partners using an SBA 7(a) loan and a second seller note, with governance rights expanding proportionally. Eighteen months later, Stage Three transferred the remaining majority stake via a scheduled note tied to retention and organic growth. The founder moved to a two year chair role with a defined sunset.

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What Happened Next

By year four and a half, assets reached 745 million dollars, revenue grew from 2.6 million to 7.1 million, operating margin improved from twenty five percent to thirty three percent after debt service, and retention stayed above ninety nine percent. The firm upgraded its technology stack, added key hires, instituted a twice yearly process freeze to protect focus, retired founder notes seven months early, and appointed a non founder managing partner.

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What We’d Tell a Founder Reading This

This worked because succession planning sequenced decisions and milestones, independent valuation turned multiples into clear pricing and affordability, and ongoing M&A readiness reduced risk by keeping a real external alternative available. The founder takeaway is simple. Begin with a small, testable stake anchored by a defensible valuation, run a tight operating cadence, and remain sale ready. Scale ownership only when the pilot proves the people, the profits, and the client outcomes. If the pilot falls short, you pivot early. If it succeeds, clients, team, and legacy are stronger.