The Blog Of The Securities Industry Professional Association



Although I sometimes find his show annoying to say the least, I couldn’t help but steal from Jim Cramer’s “ STOP TRADING” segment in which he tells viewers to put the breaks on all trading until he is done pontificating. The new accounting standards regarding PCAOB certified annual audits have been driving small firms to the brink of bankruptcy or BD-withdrawal. On a daily basis I receive calls from owners of Firms asking me to sell their firm yesterday because their next audit will cost them $20,000 or more! In most cases I get a call about 2-3 months before the audit is due and the common theme is that they want the firm sold ASAP to avoid the huge expense out of pocket. I want to be perfectly blunt and honest: Broker Dealer Exchange makes money by finding Buyers for firms that are selling. In a sense, the PCAOB requirement increases my supply line thus more money for me. In fact most new regulatory requirements do nothing more then increase the fees collected by all Securities Consultants which is why you should always pay attention to who is a supporter of new regulation. Now that I have cleared the air I want to take a moment and ask firms to STOP SELLING their firms because of the PCAOB Audit expense. I want to sell your firm but I want to do it for the right reasons, like retirement, or to take advantage of price increases or even for those that have not been as profitable as anticipated. Those are the right reasons to sell because it is YOUR choice. When you make that choice I want you to come to me and let me find the right buyer at the right price for you. Until then I want you to succeed in your business and build it up as large as possible without costly restraints from overly burdensome regulations that quite frankly do nothing to stop the corruption that is out there. Ask victims of Madoff, Sanford, Lehman, Bear, AIG and others if the PCAOB requirement helped protect them.

We at BDexchange think it’s outrageous that some members of the accounting community have used this new requirement to extort, that’s right EXTORT huge payments form Brokerage firms. What’s even more alarming is that in many cases it appears that some of these firms may be colluding with each other to force the huge cost across the board (“Hello, Justice Department?”).

All Accountants and Accounting firms are not from the dark side of the force and toward this end, BDexchange has partnered up with The Securities Industry Professional Association ( to provide to firms PCAOB accountants that can and will do your Annual audit for a modest fee, most likely 5-10k depending on you firm size and business. Most members were previously paying around 5k for their audits so any increase will be modest but will not be so large that you have to call me and ask me to “sell your firm tomorrow”!

Please contact us when your ready and we will point you to a PCAOB Accountant that is in your area and price range. Eventually we will be posting as a resource to all readers of BDexchange’s Newsletter and The SIPA will be posting the contact info on its site shortly. If you are one of the lucky firms that has a PCAOB Accountant that has not taken advantage of the new requirement then let us know and we would be happy to add him or her to our growing list. In the meantime, prosper and or survive during this hard economic time and once you’re ready, feel free to give me a call when YOU decide it might be time to sell.


Post Metadata

September 1st, 2009


Comments are closed.