►A seller was identified: a general securities firm with numerous reps, producing and profitable. This firm enjoyed an excellent reputation, having been built by the owner over many years. Owner was willing to sell to a quality firm which could protect his legacy, and further, he was willing to stay on for a limited time, in order to facilitate transition.

►Buyer needed a new executive, but did not want the head of the purchase firm to run the show. This posed a particularly serious obstacle to the new employees starting work immediately, as any change in ownership must be reviewed and approved by FINRA, prior to new management exercising control.

Recommendation...

BDM identified a potential seller. The owner of this producing and profitable BD desired, after building his business for many years, to retire. His firm was well known, clean, and had an excellent reputation. Furthermore, he agreed to stay with the firm after purchase to facilitate the change in ownership.

But the purchaser did not want the current owner to stay on. BDM located a senior compliance officer with a twenty year clean record. Additionally, this executive was very well known to FINRA and had shepherded changes in ownership previously. With approval of FINRA, this qualified executive could join the selling firm and shepherd the transition to new ownership. He would join the firm, not as a consultant, but as a permanent executive officer. His status, experience, reputation and relationship with FINRA district office could solve these issues, provided FINRA would approve. Both firms were introduced to the executive, and both found him to be an ideal candidate, not only for the transition, but for the continued operation of the new firm.