Regardless whether a private equity add-on or growth-oriented expansion target, the strategic acquisition of a competitor signals antitrust issues. In virtually all acquisitions and mergers there are various regulatory concerns and compliance issues. But negotiations with a competitor raise antitrust concerns, even in the earliest phases.
If your business is contemplating an acquisition of or a merger with a competitor – or if the target could be a competitor reasonably soon if it desired to – it is important to plan how the antitrust laws may influence the deal. Here are some considerations when entering into discussions with a competitor target.