Private Equity Threads Merger Enforcement Needle

Thursday, July 14, 2022

Christian Moretti is quoted in an article in The Deal that discusses the complicated relationship between the private equity (PE) field and the U.S. government as the Federal Trade Commission and the Department of Justice investigate PE deals. The article also analyzes the politics behind PE and how the criticism of PE firms continues to heighten.

The article explains how rollups can pose competitive harm even though the intent of combining a target industry is to create greater efficiencies and economies of scale and also addresses how the PE business model has been linked to social justice concerns.

“These kinds of transactions are receiving increased regulatory scrutiny even if the target company does not directly compete with other portfolio companies,” Christian stated.

“Firms pursuing rollups know they’ll face additional information requests and other hurdles that can extend a transaction’s timeline … they’re definitely taking that into account, and that may also affect their interest in a target,” he added.

To read the full article, click here. (Subscription required) 

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