Private Equity Should Beware the Antitrust Microscope
Antitrust attorneys David Kully and Kenneth Racowski co-authored an article for Law360 about the antitrust enforcement environment and its recent focus on private equity companies. The Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice have indicated that their principal areas of concern are so-called "roll-up" strategies, whether firms’ focus on cost cutting and short-term returns disqualifies them as divestiture purchasers, and "interlocking directorates" that can violate the Clayton Act and allow inappropriate sharing of competitively sensitive information. Mr. Kully and Mr. Racowski advise that private equity companies stay diligent and not assume that any transaction is too small to attract attention. They also recommend that companies involve experienced antitrust counsel early on to evaluate potential risks.
The authors also published a Holland & Knight client alert on this topic.
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