A new act has been introduced by Senator John Kennedy (R-La) that will help small business owners access the services of small business merger and acquisition brokers.
The Small Business Mergers, Acquisitions, Sales and Brokerage Simplification Act will enable small business owners to call upon experts to help them sell their business or merge two or more businesses together. The brokers will now be able to organize sales and purchases of business ownership, as well as the control of private companies, without registering as ‘broker-dealers’ with the Securities and Exchange Commission and the Financial Industry Regulatory Authority.
Sen. John Kennedy Bill to Buy, Sell, or Merge Main Street Business
By introducing a bill that allows brokers to organize such business arrangements without registering as ’broker-dealers’, the mergers and sales of businesses will be much easier and cheaper to undertake. This will enable small business owners to continue expanding while supporting job growth.
The bill removes a major bureaucratic roadblock for small business mergers and acquisitions. Without needing to register with the Securities and Exchange Commission and the Financial Industry Regulatory Authority, merger and acquisition experts can now make their services more affordable and accessible to small business owners who need them.
Consistent Access for ‘Main Street Entrepreneurs’
Senator John Kennedy said of the new act: “Whether they want to buy new ventures, sell their businesses or retire, small business owners depend on Merger and Acquisition brokers to help them navigate these changes. We need to ensure that Main Street entrepreneurs have consistent access to financial services so that America’s small businesses – and the jobs that depend on them – can continue to thrive.”
Regulatory Bodies for Small Businesses
The U.S. Securities and Exchange Commission or SEC is a large independent agency of the United States federal government. Brokers previously had to register with the agency because it is SEC that enforce the laws that prevent stock market manipulation. Such an agency was deemed necessary in the aftermath of the Wall Street Crash of 1929, but registering is costly for brokers who previously passed that cost onto their clients.
The Financial Industry Regulatory Authority or FINRA is a self-regulatory American corporation and organization that regulates member brokerage firms and exchange markets.
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This article, "Sen. Kennedy Bill Would Make It Easier to Buy, Sell or Merge Main Street Local Businesses" was first published on Small Business Trends
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Gabrielle Pickard-Whitehead, Khareem Sudlow
