Burch & Company, Inc.

Evidence that Securities Licensing Issue is Heating Up at State Level

As a sponsor of the AM&AA's Licnesure Initiative, we have received the following communication from the AM&AA Licensing Task Force regarding a recent letter sent out by Utah's Department of Commerce:

"The attached letter was originally mailed to all Utah attorneys, business brokers and M&A advisors, and was being privately circulated at the recent IBBA/M&A SOURCE Conference in Atlanta.

It clearly indicates growing awareness/concern by some state regulators regarding business brokerage transactions that may be completed by agents who are not properly licensed under existing state and federal securities laws.

In the meantime, the AM&AA Licensure Task Force is working diligently to bring clarity and reason back to our profession with its joint Private Placement Broker and M&A Broker proposals, which are actively being considered by both the SEC and NASAA."

Here is a copy of the letter: Download Utah Licensing Letter

Burch & Company offers a solution to this issue, in that we license middle-market intermediaries under our existing broker/dealer platform.  To discuss, give us a call at 816.842.4660.

Burch & Co. to be in attendance at Atlanta's M&A Source Expo

Randy Burch, President of Burch & Company, Inc., will be in Atlanta June 10-12th, 2009, for the M&A Source Expo at this summer's IBBA/M&A Source Conference.  M&A Source members, please stop by and visit with him at the Expo on Thursday, June 11th, at the Burch & Company table, if you would like to discuss licensing with our broker/dealer as an Independent Contractor in order to be in compliance when involved with any securities-related activities.  Randy can discuss all fees involved, ongoing compliance requirements, assignment of contracts, etc.  I am happy to set up a meeting for you with Randy, as well, during the above mentioned time frame.  Just send me an email at: jburch@burchco.com

M&A Registered Rep Map

Link to Burch M&A Rep Map

We have, to date, affiliated 15 Middle-Market Intermediaries, composed of eleven groups, throughout the country so that they may be in full compliance when engaged in stock or debt M&A deals.  These individuals are Independent Contractors with Burch and keep their own identity in engagements. Click on the link above to view locations. 

Recording of Webinar Available: "Securities Licensing - Is it for Me?"

Burch & Company, Inc. recently particpated as a speaker in an educational webinar presented by M&A Source.  This webinar, "Securities Licensing - Is it for Me?" provided much valuable information for those individuals/groups contemplating getting securities licensed.  M&A Source has made a recording of this presentation available on their website, along with copies of each speaker's Powerpoint presentation.  If you would like to check it out, head to: Link to M&A Source Educational Webinar

Contact me directly at 816-842-4660 or jburch@burchco.com if you have any questions on Burch's portion of this presentation...Thanks!

Getting Securities Licensed with an Existing Broker/Dealer

Are you a middle-market intermediary considering getting your securities license?  If so, there are currently two routes you may take: One is to form your own broker/dealer.  The second is to register under an existing broker/dealer.  Here, I will speak on the latter.  Burch & Company, Inc. is an broker/dealer whose membership agreement with FINRA allows us to provide financial advisory services for sell-side and buy-side mergers and acquisitions.  Thereby, we may register M&A professions as Independent Contractors under our existing broker/dealer platform.  Once these individuals become qualifed (meaning they pass all required exams), they may then be in compliance when assisting their clients in transactions that involve stock, debt, notes, etc.  To learn about this process, step by step, take a look at the attached white paper.  The document discusses not only the initial licensing process, but also ongoing regulatory requirements you should expect as a registered individual and estimated costs.  Please feel free to contact me with any questions. Download Securities Licensing White Paper

Keynote Speaker at M&A Source to discuss Securities Compliance

If you are planning on attending the IBBA M&A Source Expo in Louisville (NOV 16-22nd), be sure and make it to the luncheon on November 19th.  Shane Hansen of Warner Norcross & Judd LLP will be the Keynote Speaker.  He will be discussing, among other things, compliance solutions such as affiliating with an existing Broker Dealer. Discussion starts at 12 noon.  See page one of the attached conference schedule for a broader overview of this topic: IBBA Conference Brochure  Here is a taste:

"What’s the difference between you and an investment banker? Your business card may not read “One Wall Street, New York, New York”  but, apart from the number of zeros in the deal price, and your take home pay, your M&A engagements and daily activities are regulated no differently under federal and state securities laws."

I will be in attendance for this luncheon and then representing Burch all day Thursday at the M&A Expo.  Please stop by our table to learn about our middle-market intermediary securities licensing platform. 

Thanks, Jessica

Excerpt above quoted from IBBA Fall Conference brochure.

New General Securities Principal at Burch

Congratulations to Donna Driver, Burch & Company's Operations Manager, as she has just passed the grueling Series 24 Exam and is now a licensed General Securities Principal!  Donna plays an integral role in our firm, assisting in all aspects of our business.  Her even-temper, attention to detail, unfettering positive attitude and drive make her a Principal any broker/dealer would love to have.  GREAT WORK DONNA!

Article discussing Finders & Securities Transactions

The attached article, published on lexology.com, discusses recent U.S. Securities and Exchange Commission (SEC) enforcement action and New York State court decisions regarding persons acting as finders in securities transactions. The article states that these recent actions "confirm that individuals that act as “finders” in securities offerings will be the subject of increased scrutiny."

Download article_sec_v_macgregor_and_torsiello_capital_partners_case_730081.pdf

Burch & Co. to attend M&A Source in NOV

Burch & Company plans to be in Louisville, Kentucky in November to attend the IBBA/M&A Source Expo Fall Event.  As the date approaches, please contact me if you wish to set up some time to discuss our M&A Securities Licensing Division or the cost and time involved with getting your securities license.  We license middle-market intermediaries so that they may be in compliance when engaged in stock and/or debt M&A transactions.

Burch & Co. Recently Attended the AM&AA Summer Conference

THANK YOU TO EVERYONE who stopped by our exhibit table in Chicago during the AM&AA's Summer Conference.  If you were unable to meet me at the table, or did not attend, feel free to call me at 816-842-4660 to discuss M&A Securities Licensing. I will post a link to the AM&AA's presentation from this conference as soon as it is made available.  Mike Ertel and Shane Hansen did a great job of reviewing the AM&AA's continued efforts to work in conjunction with the ABA's efforts and ultimately work towards proposing to the SEC more applicable broker-dealer definitions for the M&A community, as many middle-market intermediaries are acting outside of current laws as "unregistered broker-dealers." 

Unfortunately, there is no assured time line or any guarantee in the success of these tremendous efforts. The current financial environment and regulatory scrutiny may prove to push the topic back. Of course more immediate solutions are available.  You can start your own broker/dealer. Or, you may opt to obtain your securities license with an existing broker/dealer, such as Burch, and simply take the licensing issue off the table, preparing your business for future opportunities, including stock and debt M&A transactions.