A potential Seller of a BD contacts Broker Dealer Market and confidentially discusses his goals. Once the Seller understands the process, and the Seller is interested in proceeding, Broker Dealer Market will ask relevant questions to perform a valuation. Broker Dealer Market’s valuation model is based on certain relevant factors combined with current market conditions. Our model has proven very effective in identifying value with the resultant potential sales price and generally reflects a very acceptable price that the current market will bear. Provided the proposed sales price is acceptable to Seller, the Seller signs an Agency Agreement.

Broker Dealer Market then goes to work to find a suitable match. We have been in this niche market for many years and have facilitated thousands of transactions. Consequently, we can often locate a qualified Buyer, based on the Seller’s needs, in a short time frame. The potential buyer will not know the identity of your firm until you have given prior approval.

Once a qualified Buyer has been identified, the potential Buyer is brought to the attention of the Seller. If Seller is interested in Buyer, introductions are made and Buyer is provided with all publicly available documentation on the Seller, including (but not limited to) audited financials, current focus report and business plan. The Seller will produce two due diligence packages and either e-mail to or overnight package to Broker Dealer Market.

If the Buyer now wishes to do due diligence, he will place a refundable deposit in escrow to take the BD off the market for 10 days. This will allow the Buyer time to complete due diligence without fear of the company selling out to another buyer. Once a deposit has been received, Broker Dealer Market will advise the Seller. Broker Dealer Market will now send out the due diligence package to the potential buyer. Experience has shown that by this time, Buyers have typically found a match and will have their decision confirmed by due diligence. Under our guidance, 9 out of 10 deposits lead to a completed transaction.

Once due diligence has been successfully completed, and there has been a meeting of the minds, Broker Dealer Market will send “Generic” Purchase Agreements to the Buyer and Seller, and both will tailor these agreements to suit their specifics, management arrangement, etc.

Buyer will send a written offer to Broker Dealer Market. It is forwarded to Seller, and, if acceptable to seller, Buyer and Seller agree to a closing date no sooner than 30 days after written notification to the FINRA of the pending transaction. Meanwhile, Buyer will wait to receive a 1017 package from the local FINRA office. It is important to note that the Buyer will have only 30 days to create and file the 1017 package. There is a significant amount of work involved in preparation of the 1017, and preparation of this package can take quite a few hours, so the Buyer must be prepared for this effort and Seller should be ready to assist with any necessary information.

Depending upon the particular arrangement between the Buyer and Seller, 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 be affected. Broker Dealer Market has a team of legal experts that stand ready to assist you in the 1017 process.

Broker Dealer Market has completed thousands of successful transactions, and will guide the Seller through all phases of the selling process.