A Close Look At M&A Brokers' New Registration Exemption
February 25, 2014, 1:36 PM EST
Law360, New York (February 25, 2014, 1:36 PM EST) -- Six lawyers were instrumental in the issuance by the staff of the U.S. Securities and Exchange Commission a no-action letter (the "Six-Lawyers Letter") that allows intermediary business brokers (mergers and acquisitions brokers) to receive transaction-based compensation for assisting in effecting sales of businesses without registering as brokers with the SEC.
The Six-Lawyers Letter expands limited relief previously granted to business brokers in several significant ways. Not only does it allow an M&A broker a far greater level of participation, but also it is not dependent on...