Financial Advisors Want to Know: The RIA Lifecycle: From Launch to Growth to Exit | Ep 97. Patrick Burns

Welcome to the Financial Advisors Want to Know Podcast, I’m Catherine Tindall a CPA with Dominion where our focus is helping financial advisors navigate income tax planning and compliance for their firms.

In this episode, I’m joined by Patrick Burns—managing attorney at the Law Offices of Patrick J. Burns and former president of Advanced Regulatory Compliance—to walk through the full lifecycle of an RIA. We cover what to get right in the early stage (foundational legal + people documents), what can go wrong in the growth stage (especially in M&A), and what firms should be doing years before an exit to protect valuation and reduce risk.

Key Takeaways:

Compliance isn’t the full foundation. Employment agreements, operating agreements, and HR policies prevent expensive disputes later.

Partnership misalignment is predictable. Production gaps, role expectations (CCO/CFO/ops), and work-hour imbalance should be addressed before launching.

In M&A, “fit” matters as much as numbers. Bad personality + messy earnouts can create major buyer’s remorse—even if the deal looks good on paper.

Exit prep should start 2–3 years early. Clean financials, reduced liabilities, and organized documentation protect valuation and speed diligence.

Internal succession is harder for 100% owners. Without equity, non-competes, capital, and next-gen leadership, internal buyouts are often riskier than expected.

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Patrick's Website

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