IDENTIFICATION AND INTRODUCTION:
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 Markets 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 Sellers
needs, in a short time frame. The potential buyer will not
know the identity of your firm until you have given prior
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 firstname.lastname@example.org 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
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.