At the MBBI Winter Conference this past winter, I overheard a gentleman make the following statement: "Securties Licensing is a Pain!" This misconception, I believe, is quite common among M&A Intermediaries and Business Brokers. Obtaining most any license is not typically an enjoyable process. To obtain one's driver license, you must parallel park. For a Real Estate License, in most states, you must sit for hours and hours listening to an instructor discuss strange terms such as puffing and channeling. What then would you have to face when obtaining your securities license as an M&A Intermediary? The answer, surprisingly, is not much. Let me break down for you the process of obtaining a securities license through Burch & Company, Inc.
1. After initial meeting with Burch and agreeing upon terms, Fill in a FINRA required Form U4 - a form that covers all your personal information, employment and residential history and a number of disclosure items, such as banktrupcy, criminal history or customer complaints
2. Fill in an M&A Questionnaire, which allows Burch & Company to conduct a FINRA required backgroud check
3. Sign an Independent Contractor Agreement with our Broker/Dealer, which details negotiated M&A Securities Deals commission splits/success fees. We DO NOT PARTICIPATE IN YOUR ASSET TRANSACTIONS.
4. Pay minimal Initial Fee to cover registration costs - please call 816-842-4660 to discuss.
5. Submit Fingerprint Cards
6. Begin self-study: As an M&A Middle-Market Intermediary, you most likely will only need your Series 62 (Corporate Securities Representative) and your Series 63 (State Exam). In the vast majority of cases, you DO NOT need your Series 07 (General Securities Representative). This is highly unknown amongst the M&A Industry. If you want the proper licensing to sell options, etc. you need a Series 07. If you are only engaged in selling a Corporate Stocks, you do not. These exams are limited securites exams - this means they do not contain the comprehensive level of material that you would need to learn with the Series 07. Give yourself evenings of two weeks to one month to prepare for these exams. WE HAVE HAD INTERMEDIARIES STUDY OVER A WEEKEND AND BECOME QUALIFIED, AS THEY NEEDED THEIR LICENSES YESTERDAY! IF YOU NEED TO BECOME QUALIFIED QUICKLY, IT IS COMPLETLEY ACHIEVABLE. This really depends on the time you have to focus on studying, your habits and...your test-taking abilities. The exams are multiple choice. Study material, available online, comes with practice exams - the most valuable piece of the puzzle. 70% is passing. Shoot for 90% on the practice tests.
7. Take your exams: Again, 70% is passing
After you have completed the above steps: you are a qualified registered reprentative, securities-licensed M&A Professional, and can comply with state and federal securities laws when you encouter the opportunity to earn sucess fees in an M&A deal that involves stock or debt.
FACT: Obtaining your Securities License through Burch & Company is NOT a Pain.
