Simplifying Securities Regulation of M&A Brokers

Business brokerage services are critically important to the liquidity of small business ownership, business growth, and related jobs preservation and creation. Baby boomers are faced with the prospects of either selling or closing their businesses to retire. Small business owners need and rely upon the professional services of merger and acquisition intermediaries, advisors, and business brokers (together, “M&A brokers”) to advise about and assist with the sale of privately owned businesses. However, today’s “one-size fits all” system of federal broker-dealer regulation applies “Wall Street” investment banking regulation to “Main Street” M&A brokers. Pending bipartisan federal legislation and new guidance from the Securities and Exchange Commission (“SEC”) staff will simplify and lower the regulatory costs associated with M&A brokerage services for small business owners in privately negotiated transactions.