This week we talk to brian burgerfounder and CEO of business/regulatory compliance consultancy MarketTipas well as the founder and main lawyer of the hamburger Law Firm, a boutique law firm focusing on securities and investment industry matters. Hamburger also houses the MarketCounsel Summitwhich has been called “the Davos of wealth management.”
When he launched the firm in 2000, no one in the legal field offered the full suite of regulatory and compliance services that he wanted to offer. To finance the startup, he sold his (FSBO) house, used the proceeds to launch both companies, and never looked back.
Hamburger explains how the RIA industry has undergone substantial consolidation at high prices, very often 3X revenue and/or 20X profit. For private equity, an RIA is a lot like a bond with a yield of 8-10% and a capital boost. This was especially attractive during an era of 0% fed funds rates and 2% 10-year bonds.
We also discuss the differences between “lifestyle” practices, roll-ups, carve-outs, and what it takes to lift a billion-dollar team out of a cable house and onto another platform or as independents. There are substantial restrictions and non-competition created by the largest stockbrokers, many of which have been overridden by “right to work” states. Still, there are huge anti-competitive restrictions, many of which do not exist in any other industry.
You can stream and download our entire conversation, including podcast extras, at itunes, Spotify, stapler, Google, Youtubeand Bloomberg. All of our past podcasts on your favorite pod hosts can be found here.
Be sure to check out our Master of Business next week with Ben Clymerfounder and president of hodinkeeand jeffery hunter the CEO of the company. Fowler and Clymer (nicknamed the “High Priest of Clockwork“) discuss all things wristwatches and watches, including their experiences in the 2023 clocks and wonderswhy the market has exploded in recent years and what are your favorite Grail watches.
Brian Hamburger’s Favorite Books
Four Thousand Weeks: Time Management for Mortals by Oliver Burkemann
The Millionaire Next Door: The Surprising Secrets of America’s Rich by Thomas J. Stanley and William D. Danko
Where are the client yachts?: Or a good look at Wall Street by Fred Schwed
Revised and Expanded Edition of Freakonomics by Steven Levitt
The E-Myth Revisited: Why Most Small Businesses Don’t Work And What To Do About It by Michael E. Gerber