Hiring an Investment Banker

What is an Investment Banker? An investment banker is an intermediary that facilitates securities transactions such as mergers, acquisitions, and capital raises. Investment bankers must conduct securities transactions through a registered broker-dealer, and are required to pass both the Series 79 and Series 63 Registrations.

Why Hire an Investment Banker? An investment banker has the education and experience to conduct larger and more financially sophisticated transactions. Typically, an investment banker has an MBA or law degree, carries a large professional liability policy, and has their conduct continuously reviewed by a broker-dealer to ensure compliance with securities regulations.

What are the Risks of Not Hiring an Investment Banker? When healthcare transactions are structured as “stock sales,” only a securities-licensed investment banker can lawfully receive a sales commission.

The results of paying a sales commission to a non-licensed broker for a “stock sale” can be devastating. Not only would a seller be aiding and abetting in the violation of securities laws, but a seller could have the sale of their business rescinded and unwound years after its completion.

At Seigel Advisory Services, we help eliminate these unnecessary and potentially catastrophic risks by conducting securities transactions with a licensed investment banker and through a registered broker-dealer. Click here for more on the subject from Becker’s ASC Review.

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