Concerning Fees for unlicensed Business Brokers
This question was asked by Scott B. at ExitPromise.com
I am semi-retired from the transportation sector. I have a business friend that owns a transportation company with approximately $100 mm in annual revenue that he would like to sell – retire himself. He would like me to connect him with a private equity group that would be interested in acquiring his company and prefers I be paid a “Finder Fee” by the acquiring PE firm, at closing. I know of a couple PE Firms that may be interested in this business. So my questions: (1) Are PE Firms allowed by law to pay an individual a finder fee on a deal that was referred to the PE firm by the individual and subsequently acquired by the PE firm? (2) Are there any licenses or other requirements the individual (me) must possess/meet to lawfully act and be paid in this “Finders” capacity? Thank you in advanced for your response.
- previously published no-action letters or interpretations from the SEC; or,
- seeking a response from the SEC; or
- obtaining a legal opinion from independent, reputable U.S. licensed counsel knowledgeable in the area.