For certain M&A deals involving privately held target companies, business brokers don’t have to be registered as broker-dealers, according to U.S. Securities and Exchange Commission staff. Proposed legislation winding its way through Congress would forge that SEC staff position—which applies when the buyer controls and is actively involved in operating the acquired business-- as binding securities law. Shane Hansen, a partner at Warner Norcross & Judd with a financial services regulation practice, is the principal author of the proposed legislation. We spoke to him at the Alliance of Merger & Acquisition Advisors 2015 Summer Conference in Chicago in July.
How have U.S. broker-dealer regulations affected M&A transactions?