SALE OF STOCK:
Nolan & Associates' commonly owned affiliate, Middle Market Transactions, Inc. (MMTI), is but one of a very few FINRA licensed broker dealers serving business owners in the middle market.
Utilizing a FINRA licensed broker dealer in the sale of the common stock of a middle market business is essential to the integrity of the transaction:
When the sale of a middle market company involves the sale of common stock or any other security, federal securities law requires that the business broker involved in the transaction be a FINRA licensed broker dealer. If the broker in a transaction involving a security is not a licensed broker dealer, the seller may not be able to enforce the sale contract against the buyer and, if the transaction closes, the seller may risk having the buyer make a rescission claim. Rescission would allow the buyer to force the seller to return the purchase price plus interest at the legal rate.
The requirement that a broker for a business sale structured as a sale of common stock must be a FINRA licensed broker dealer has been a rather dormant issue in recent years until a task force of the American Bar Association published a report in the May 2005 issue of the Business Lawyer. (Click here to Download and read the American Bar Association Report.) This report has served to remind all middle market transaction attorneys, representing both sellers and buyers, of the federal securities law in this regard.
Should the sale of your middle market business involve the sale of common stock or any other security, MMTI will be able to assist you with your transaction utilizing the same dealmaking team of professionals that have performed so well for Nolan & Associates for the past 30 years.
The above information regarding federal securities laws is for general information purposes and is not intended as legal advice. You should consult with your legal counsel regarding the application of the securities laws to your particular transaction.
Nolan & Associates' commonly owned affiliate, Middle Market Transactions, Inc. (MMTI), is but one of a very few FINRA licensed broker dealers serving business owners in the middle market.
Utilizing a FINRA licensed broker dealer in the sale of the common stock of a middle market business is essential to the integrity of the transaction:
When the sale of a middle market company involves the sale of common stock or any other security, federal securities law requires that the business broker involved in the transaction be a FINRA licensed broker dealer. If the broker in a transaction involving a security is not a licensed broker dealer, the seller may not be able to enforce the sale contract against the buyer and, if the transaction closes, the seller may risk having the buyer make a rescission claim. Rescission would allow the buyer to force the seller to return the purchase price plus interest at the legal rate.
The requirement that a broker for a business sale structured as a sale of common stock must be a FINRA licensed broker dealer has been a rather dormant issue in recent years until a task force of the American Bar Association published a report in the May 2005 issue of the Business Lawyer. (Click here to Download and read the American Bar Association Report.) This report has served to remind all middle market transaction attorneys, representing both sellers and buyers, of the federal securities law in this regard.
Should the sale of your middle market business involve the sale of common stock or any other security, MMTI will be able to assist you with your transaction utilizing the same dealmaking team of professionals that have performed so well for Nolan & Associates for the past 30 years.
The above information regarding federal securities laws is for general information purposes and is not intended as legal advice. You should consult with your legal counsel regarding the application of the securities laws to your particular transaction.