Buying A "Producing" Broker Dealer

Producing BD: A Broker Dealer being sold as a going concern; typically with reps, accounts, clients, and significant assets under management. Producing BDs may be dynamic going concerns with no problems whatsoever, or unprofitable and ready for turnaround, or anything between.


Buying a producing Broker Dealer can be an intimidating prospect. BD Exchange has streamlined an effective set of procedures that will remove most of the guesswork, and we stand ready with a dedicated team of experts to help facilitate a smooth transition. Risk Issues like transferability of assets, attrition of brokers and liability can all be mitigated if planned for and handled correctly. The structure of the transaction can be used as an effective tool to limit risk.

Sellers of BDs have been made aware of the associated risks that buyers face, and are prepared to make fair deals with these concerns in mind. Rather than simply listing anybody who wants to sell, we vett our sellers – and we will only work with firms that are sellable. What separates us from other firms in this niche space is our level of service. We work confidentially with both sellers and buyers to ensure a certain sophistication before any deals are done. This process is very intensive from our perspective – but the end result is that it ensures that we do not waste client’s time or resources. That we do not advertise, and our deal flow is due to repeat business and referral business is a testimony to our commitment and strength.

When to Contact Us

The ideal time to be in contact is when you start your search. The BD Exchange Buy Side team will confidentially note your parameters, provide insight into the current market and typical deal structures, and get you on the “Look List”. Once you have been alerted about a BD via the “Look List” or the web site, call in. We will send you a “one sheet” with a wealth of information about the firm. You should be able to determine from this sheet if you would have serious interest. If so, we will contact the seller, and the due diligence phase may begin. Once you have a clear picture of where the firm really stands, you can begin to consider deal structure- to mitigate risk. There may be significant back-and-forth at this point between you, the seller and BD Exchange; once favorable terms have been struck, you would provide a brief letter of intent. Meanwhile, we will get you boilerplate agreements for mark-up by counsel. Pending acceptable documents, the transition process can begin. BD Exchange stands ready to assist at all phases of the transition