New federal guidelines addressing antitrust violations are likely to further slow down venture-backed startup acquisitions. The guidelines, issued by the FTC and the Justice Department, indicate a stronger stance against certain deals. Although venture-backed companies are not directly targeted, the fear of legal action is deterring potential buyers.
In the article, Fenwick partner Thomas Ensign highlighted that these guidelines signify a more assertive approach to regulating the M&A market. This heightened uncertainty, combined with other market conditions, has led to a notable decline in startup acquisitions.
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