The Federal Trade Commission and Department of Justice have dramatically expanded their antitrust enforcement activity under current leadership, challenging mergers in industries ranging from healthcare to retail to software that previous administrations would have cleared with minimal review. Several high-profile deals have been abandoned in the face of regulatory opposition rather than endure years of litigation even when companies believed they would ultimately prevail.
Corporate attorneys are advising clients that the merger approval timeline has lengthened from an average of six months to 18 to 24 months for transactions in any sector with market concentration concerns. The extended timelines increase transaction costs and uncertainty for both acquirers and targets. Deal volume has fallen 25 percent from the 2021 peak, with antitrust risk cited as the primary reason beyond interest rate financing costs.
