'America yearns for alternative options' according to business experts, who claim Biden regulations have hindered growth.
Entrepreneur Grant Cardone dismisses the notion that Joe Biden will make the world more competitive, stating it as a red herring.
According to a group of entrepreneurs, venture capitalists, and business experts interviewed by Planet Chronicle Digital, the Biden administration's strict regulatory approach towards big businesses has hindered growth.
This week, the FTC, led by President Biden appointee Lena Khan, blocked Albertsons' $25 million merger with Kroger, citing concerns about competition and price increases. This marks the latest instance of the Biden administration's efforts to challenge big business.
According to venture capitalist Ravin Gandhi, a former CEO with experience in mergers and acquisitions, we have received offers from strategic buyers to purchase us. However, our counsel advises against it, stating that the FTC will likely flag the transaction and we will face significant legal and financial consequences, including spending tens of millions of dollars and being tied up in a bureaucratic nightmare for a year.
"Lena Khan openly discussed using mid-market M&A as a means to achieve a monopoly. Anyone who has sold a business knows this is absurd."
The chilling effect described by Gandhi has been echoed by other analysts, who say that the Biden administration's rhetoric and policies have required businesses to take matters into their own hands by abandoning or restructuring their transactions in the face of FTC and Department of Justice antitrust concerns. According to an analysis by international law firm Morgan Lewis, under Biden, the vast majority — nearly three-quarters — of all transactions in which the government sought more details from companies about a proposed merger were subject to enforcement action.
"Grant Cardone, CEO of Cardone Capital, stated that America desires a different option and that the belief that Joe Biden will make the world more competitive is a false argument."
Cardone also expressed frustration with regulatory battles with the Biden administration, stating that they have made it "almost impossible for people to do business."
Numerous other business leaders, venture capitalists, and individuals with extensive knowledge of mergers and acquisitions concurred with the views expressed by Gandhi and Cardone that business expansion has been hindered.
"Kison Patel, a financial tech entrepreneur and host of "M&A Science," stated that the FTC's aggressive antitrust enforcement under the Biden administration has significantly dampened M&A activity, particularly in the tech sector. He gave an example of a Fortune 10 tech company that has scaled back its deal making from 30 to fewer than five transactions."
Armen Martin, a seasoned mergers and acquisitions lawyer, stated that he had heard optimism from venture capitalists regarding FTC Commissioner Khan's departure. She will be succeeded by President-elect Trump's nominee for FTC Commissioner, Andrew Ferguson.
Martin predicted that there would be more M&A activity under the Trump administration due to companies feeling more confident about government involvement.
The FTC spokesperson stated that the blocked grocery store merger demonstrates the effectiveness of strong antitrust enforcement in benefiting consumers, workers, and small businesses.
He stated that today's victory would safeguard competition in the grocery industry, thereby preventing further price increases.
politics
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