Could Changes to New Merger Rules Hurt Private Equity Firms' Ability to Transact?

While the newly approved changes to US merger rules will require more information to be collected and shared with regulators than ever before, it's still less than originally proposed a year ago. I can appreciate one desired outcome may be fewer blocked deals. Depending on the size and volume of transactions, this could be burdensome for many financial sponsors we work with who have roll-up strategies. As it is with so many regulations, it's difficult to determine whether the expected benefits would outweigh the costs or unexpected consequences that follow.

While the effective date of the approved changes won't go into effect for another year, this could be an important consideration point for dealmakers in light of the expected increase in deal flow beyond 2024. However, as many would expect, a change in administration would likely derail these changes entirely, and this might all be a moot point. I hope you're looking forward to a bit more clarity—across multiple fronts—in 2025.