"Virtual Purchase" of A Broker Dealer

Virtual Purchase: a structure for purchasing certain assets from a Producing BD, including accounts, reps, etc., maybe even the phone systems and lease – but not the actual Broker Dealer. It is essentially an asset purchase, and as such, it may not be subject to regulatory approval, depending on certain factors. Therefore, a properly structured Virtual Purchase can happen very quickly – in a matter of days. There is also the benefit that Liability does not transfer, since you are not purchasing the BD. Virtual Purchase represents an ideal way for existing broker dealers to expand – with limited risk and time-to-market. Please read the Case Studies to see how this works in practice.

Virtual Purchase works similarly to the purchase of a book of business – except that the purchase may also include a wide range of related assets, such as trading systems, CRMs, registered rep employment agreements, etc. Price will be similar to purchase of the firm including the BD.