IDENTIFICATION AND INTRODUCTION:
Broker Dealer Market endeavors to make the buy, sell and merge
process completely confidential. Therefore, upon execution
of a mutual confidentiality
agreement, BDM goes to work in identifying Broker
Dealers or Registered Investment Advisor that meet the needs of the buyer.
Once an appropriate broker dealer or Registered Investment
Advisor (RIA) has been identified, general information about
the Broker Dealer/RIA is provided to the Buyer,
including their current approved products to sell. Introductions
are then made. If the wishes to do due diligence, he will
place a refundable deposit in escrow, in order to take the
Broker Dealer/RIA off the market for 10 days.
The Broker Dealer/RIA is now taken off the market, and made unavailable
to others for a 10 day period allowing proper time
for due diligence. If there is a delay, and due diligence
will take longer than 10 days, the potential Buyer may request
Once due diligence has been successfully completed by both
parties and have agreed to the transaction, at this point
the seller will notify the FINRA
of its intention to sell, and identify the potential buyer.
The buyer and seller will agree on a closing date. Please
note that the closing date will always be no sooner than 30
days after notification of intention to sell to the FINRA.
Broker Dealer Market will send Generic Purchase
Agreements to the Buyer and Seller, and both will tailor these
agreements to suite their specifics, management arrangement,
Buyer will wait to receive a 1017 package from the local FINRA
office. It is important to note that the Buyer will have 30
days to create and file the 1017 package. There is a significant
amount of work involved in preparation of the 1017, and if
need be we can recommend attorneys and securities consultants
to assist in completing the 1017 package.
Depending upon the particular arrangement the Buyer and Seller
have made, closing may take place prior to, or at the same
time as the conclusion of the FINRA review of the Change in
Membership (1017), when, as and if approved. Please note that
depending upon the current work burden that the district regulators
are facing, review times will vary.
Broker Dealer Market has completed thousands of successful
transactions, and will guide the Buyer through all phases
of the purchase process. Our attorneys and securities consultants
have significant transactional experience, and can make the
process easier and smoother done correctly the first
To reduce time on the phone and lengthy explanations, before
calling about any particular Broker Dealer/RIA, it would be enormously helpful
if potential buyers:
|| Fill out Confidentially
Agreement and Fax it back to (954) 565-8831
||Read the short Complete
Procedures for Buyers document
or call (954) 565-2465 for a copy.
|| Be prepared to take the
Off the Market for
Ten Business Days with an Escrow Deposit. No one else
be sent to the Seller until you have done the Due Diligence
on the Broker Dealer/RIA, The Escrow Deposit is fully refundable
Bank-to-Bank. *Note: the ten-day period may be extended
by several days upon request of the buyer.
||If you need a Generic
Purchase Agreement, ask us to
fax or e-mail you one. Work must be done on this agreement
it to what you and the Seller have agreed to do.
||Make sure that Seller has sent
written notification to FINRA
and identification of the Buyer. Closing can take
days after notification and identification, unless
has tied the closing date to the FINRAs approval.
||Important! On the larger (5MM)
Broker Dealers/RIA's for Sale,
the Potential Buyer must provide Proof of Funds
before being introduced to the Seller.
||If a Buyer needs a securities
attorney to assist in putting
together a purchase agreement or a securities consultant
to put together the rule 1017 (change of membership) package,
||When given Seller's name and
A. Please be discreet. Speak only to the Seller and
to no one else.
B. Ask the Seller if this is an appropriate time for
him to discuss the subject.
C. Try to get all your questions answered at this time
or with subsequent calls. Please do not ask for the
due diligence package until you take the Broker Dealer
off the market with an escrow deposit.