U.S. Sen. John Kennedy (R-LA) is touting the potential benefits of a measure he introduced that focuses on aiding small business owners in gaining access to merger and acquisition (M&A) brokers.
Kennedy indicated the Small Business Mergers, Acquisitions, Sales and Brokerage Simplification Act would enable small business M&A brokers to organize sales and purchases of ownership and control of private companies without registering as broker-dealers with the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA).
“Whether they want to buy new ventures, sell their businesses or retire, small business owners depend on M&A brokers to help them navigate these changes,” Kennedy said. “We need to ensure that Main Street entrepreneurs have consistent access to financial services so that America’s small businesses—and the jobs that depend on them—can continue to thrive.”
Officials noted that eliminating the requirement to register with the SEC and FINRA removes a roadblock for M&A brokers, making their services more affordable and accessible to small business owners in need of assistance to buy or sell companies.
The legislation stipulates the amendment to the Securities Exchange Act of 1934 is slated to take effect on the date 90 days after the date of the bill’s enactment.