In a statement to Congress last week, Commissioner Rohit Chopra of the Federal Trade Commission (FTC) advocated for increased antitrust enforcement against private equity-backed “roll-up” acquisition strategies, especially acquisitions of physician practices and other healthcare providers. Roll-up transactions are often valued under $94 million and thus are often not reportable under the HSR Act, a statute requiring the filing of pre-merger notifications to allow the FTC and Department of Justice (DOJ) to determine whether a transaction might violate the antitrust laws. Chopra claimed this lack of reporting allows private equity to “quietly increase market power and reduce competition” and urged the FTC to increase its focus on investigating non-reportable transactions. Here are three things you need to know about the FTC scrutiny of private equity roll-ups, according to Bass, Berry & Sims PLC.
Read the full article: Three Things to Know About the FTC’s Possible Increased Scrutiny of Private Equity Roll-Ups //
Source: https://www.lexology.com/library/detail.aspx?g=6a36c122-26ca-49fd-a19e-ca0cd865553c