• M&A Brokers Update
  • February 18, 2014 | Author: Regina M. Joseph
  • Law Firm: Shumaker, Loop & Kendrick, LLP - Toledo Office
  • Brokers that facilitate the purchase and sale of privately held companies usually seek to be compensated by a percentage of the transaction value if the transaction is consummated. For a transaction structured as a sale of equity securities, payment of transaction-based compensation is usually problematic under federal and state securities law. This is because such activity has traditionally been seen to fall within the definition of a “broker,” requiring burdensome registration as a broker-dealer.