Summary of Amendments Submitted to the Rules Committee for H.R. 477 - Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2017

Summaries Derived from Information Provided by Sponsors

Listed in Alphabetical Order

December 6, 2017 12:22 PM

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Sherman (CA), Huizenga (MI)


LATE REVISED Makes several changes that provide additional protections for investors and small businesses, which will align the bill with a Securities and Exchange Commission no-action letter issued January 31, 2014. Specifically the amendment includes provisions that would prohibit passive buyers in the M&A transaction, prohibit M&A brokers from binding a party to a transfer of ownership, prohibit M&A brokers from providing financing for the transfer, and require M&A brokers that represents both the buyer and seller to disclose that to both parties and receive written consent.