On January 14, 2014, the U.S. House of Representatives passed H.R. 2274, titled Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act, which could help reduce the costs for small business owners to sell their businesses. Here’s the summary from the Congressional website:
“Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2013 – Amends the Securities Exchange Act of 1934 to allow merger and acquisition brokers (M&A brokers) who perform services in connection with the transfer of ownership of smaller privately held companies to register with the Securities and Exchange Commission (SEC) by filing an electronic notice.
Declares such registration effective upon receipt by the SEC of a properly completed notice. Requires SEC approval of a registration, however, if the broker or an associated person is subject to suspension or revocation of registration, to a statutory disqualification, or to a disqualification under SEC rules pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act.”