Most of the talk about antitrust negotiation and enforcement focuses on large deals involving large companies. That's because each year, antitrust agencies receive notices of larger settlements (those currently valued at more than $119.5 million) under the Hart-Scott-Rodino Act. But accretion schemes, popular among private equity companies and other corporate players, can be executed through a series of smaller acquisitions that individually fall below the threshold for reporting to antitrust agencies. A series of relatively small acquisitions can have the same impact on competition as a large one, allowing a company to eliminate competition and accumulate significant control over products and services without review by antitrust agencies. This is especially concerning in sectors where competition occurs primarily at the local level, such as healthcare or retail.
Serial acquisitions that eliminate small competitors over time can have serious consequences for consumers, workers and businesses. Once antitrust agencies detect that a company is relying on a serial acquisition strategy to buy up small competitors, they can take action. For example, the FTC has challenged serial acquisitions involving anesthesiology practices, veterinary clinics and dialysis clinics while the DOJ has questioned acquisitions involving dairy processors. But there is growing concern about the proliferation of serial acquisition strategies, especially among private equity firms, real estate investment trusts and other corporate players. Antitrust agencies are seeking the public's help in identifying other sectors where these strategies may be underway and go unnoticed.
Today, the FTC and DOJ released a โRequest for Information for Public Comment on Corporate Consolidation Through Serial Acquisitions and Accumulation Strategies.โ This RFI seeks information on serial acquisitions in any sector of the U.S. economy, including, but not limited to, the housing, defense, cybersecurity, distribution, agriculture, construction, and aftermarket/repair markets. To get a more complete picture of how roll-ups are impacting the economy, we welcome input from consumers, workers, businesses, advocacy organizations, professional and trade associations, local, state and federal elected officials, and academics and other experts with knowledge. of the functioning of specific industries and of the effects of serial acquisitions more generally.
You can play an important role in helping antitrust agencies detect and deter serial acquisition strategies. If you have any experience with serial procurement (as a consumer, worker, supplier, business, or otherwise), please consider sharing that experience with us via submit a public comment. His comments will go a long way toward helping us understand the ways in which stacking procurement strategies can lead to consolidation, higher prices, lower quality, or fewer options for important products or services, leaving the American public worse off.
