Nearing $1B, An RIA CEO Steps Aside as Part of Succession Plan

Core Insights - Eric Brotman, CEO and founder of BFG Financial Advisors, is stepping down to focus on the firm's growth, with a planned internal succession rather than an acquisition [1][3] - The firm is on track to reach $1 billion in client assets by early 2026, aided by its third acquisition [3] - Brotman has been gradually selling shares to junior shareholders since 2003 to ensure a sustainable transition and to empower employees [2][3] Company Structure and Succession - Lena Nebel, the former president and COO, will assume the CEO role, while Brotman will become the chief growth officer [3] - BFG Advisory has 23 employees, with Brotman owning approximately 52% of the firm and Nebel holding 27% [5] - Shareholder votes are required for decision-making, preventing unilateral actions by Brotman or smaller shareholders [5] Industry Context - Many small to mid-tier firms lack a written succession plan, highlighting a gap in the industry [4] - There are RIA aggregators and consultancies offering succession tracks with external capital, indicating a growing market for succession planning [4] - Brotman emphasizes the importance of legacy and employee involvement in the firm's future, contrasting with the trend of selling to private equity [5]