Archives for August 2013

Colorado Approves an Exemption from the Broker-Dealer Registration Requirements

EXEMPT:"A person who acts as a business broker with respect to a transaction involving the offer or sale of all of the stock or other equity interests in any closely held corporation provided that such stock or other equity interest is sold to no more than one person, as that term is defined in the Act."- As quoted from 3 CCR 704-1:51-2.1.1 Paragraph B.  Effective date of October 15, 2013. From an email written by Mike ErtelCo-Chair, AM&AA Licensure Task Force:TO: ALL SPONSORS OF AM&AA’s … [Read more...]

Key Factors on the Acquirer’s Side

There are several key factors on the acquirer’s side of a sale, most of which are necessary to achieve a successful closing. Just as a seller has to deal with quite a few factors, the acquirer must also. Some of the more important ones on the acquisition side are: Sufficient financial resources to complete the deal as specified. Depth of capable staff to run the existing business and also execute an acquisition at the same time. A rational approach to the type, size and geographic location … [Read more...]

Colorado Proposes an Exemption from the Broker-Dealer Registration Requirements for Business Brokers – August 26, 2013

By: Trevor Crow, Dufford & Brown, P.C. The Colorado Division of Securities recently issued a notice of a public hearing, which is being held to amend Rule 51-2.1.1 to exclude business brokers from the definition of “Broker-Dealer” as that term is defined under the Colorado Securities Act (C.R.S. § 11-51-201(2)). The proposed amendment to Rule 51-2.1.1 adds a new Section B to the current rule. The new Section B is provided below. A full copy of the current Rule 51-2.1.1 is here. Rule … [Read more...]

Preparing A Company To Sell

By: Trevor Crow, Dufford & Brown, P.C. Time is the biggest deal killer, so being prepared is the best way to put your business in a position to sell when the opportunity comes knocking. Selling a business is a time sensitive process. When a potential buyer is ready to pull the trigger, the business owner must be prepared to close the deal quickly or the buyer may lose interest or find another potential target. I believe it’s one of Newton’s laws of motion that says things in motion tend to … [Read more...]