Federal legislation would ease small business M&A

"As a generation of baby boomer entrepreneurs looks toward retirement, a West Michigan congressman has sponsored legislation to make it easier to broker the sale or acquisition of small businesses.

Sponsored by U.S. Rep. Bill Huizenga, R-Zeeland, the bill would direct the U.S. Securities and Exchange Commission to streamline the registration process for firms that broker the sale of privately held businesses simply by allowing them to register electronically. That would reduce the regulatory compliance costs for M&A firms involved in deals for small companies, Huizenga said.

The legislation would affect brokers representing businesses with EBIDTA of less than $25 million or annual revenues of less than $250 million.

In remarks on the U.S. House floor prior to the unanimous Jan. 14 vote to pass the bill and send it on to the Senate for consideration, Rep. Huizenga noted that the SEC’s annual Forum on Small Business Capital Formation for seven straight years recommended modernizing and streamlining regulations over M&A brokers. He attributed the need for the legislation to an oncoming wave of baby boomer entrepreneurs looking to retire and sell their businesses."

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For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.