Good morning,
A bill in the U.S. Senate could change the way you plan your startup’s entire trajectory--especially if your ideal exit strategy involves a merger or acquisition.
Last month, Senator Amy Klobuchar (D-Minn.) introduced a bill that’s been called the most ambitious antitrust reform in nearly half a century. If passed, the Competition and Antitrust Law Enforcement Reform Act (CALERA) would make major changes to the mergers and acquisitions process in the United States. Klobuchar has been a sharp critic of "too big to fix" mergers, many of which involve large tech companies--Amazon's acquisition of Whole Foods and Facebook's purchase of Giphy, to cite two examples--arguing that they suppress competition.
Quashing such problematic activity could be an effective antitrust tool, used to regulate the buyers. Perhaps lost in the fray: the startups on the other side of the table. CALERA aims to keep big firms from purchasing smaller competitors with industry-disrupting potential. If you run such a startup, you could lose a potentially lucrative exit strategy. Indeed, the bill could encourage you to plan your company’s entire trajectory differently, which may be part of the point.
Read our story to learn what the antitrust legislation aims to do, and how it could change the mergers and acquisitions landscape for startups nationwide. |
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