|
Re: But wait, there's more
Quote:
Originally Posted by Adder
Regarding who owns everything when this is done, it's a bit strange to me that Warren and AOC are proposing a ban on all HSR-reportable mergers in an effort to keep PE from buying up industries and "protect small businesses" who will be struggling.
Selling to PE means the owners get at least some cash for their assets and the opportunity to do further business in the future. Not selling to PE means liquidating the assets, which will be acquired out of liquidation by PE or other financial buyers, and being left with nothing. Doesn't sound like much protection.
Of course, the proposal isn't going to go anywhere anyway.
|
An HSR Reportable merger is a decent sized acquisition. Sure, some of those companies are troubled and may have few other options; more of them see synergies of one sort or another (most of my HSR Reportable deals are one-product bio-techs or med device companies where they will benefit from the marketing muscle of a bigger more diverse company - and the result is an anti-trust type issue of industry consolidation). But if you put a pause on HSR reportable mergers in my industry, you just get a backlog and a lot of equity investments preliminary to the ultimate merger. And once in a very blue moon you get an IPO candidate.
__________________
A wee dram a day!
|
