A previous nugget discussed the Hart-Scott-Rodino Act, which requires that parties to a merger of a certain size report the transaction to the Federal Trade Commission and the Department of Justice prior to the closing. The Act applies to many midmarket transactions. Generally, to be a reportable merger, both a “size of person” and “size of transaction” test must be met. The dollar thresholds are adjusted each year. Earlier this year, the Federal Trade Commission announced the dollar thresholds that will apply in 2018. The size of person test is met if either the purchaser or seller has $168.8 million or more in annual sales or total assets, and the other party has $16.9 million or more in annual sales or total assets. The size of transaction test is met if the value of the seller is greater than $84.4 million. So, check if your transaction falls within the increased ranges discussed above. If it does, then the premerger notification rules apply.
ABOUT GLENN D. SOLOMON
email@example.com | 443-738-1522
Glenn D. Solomon is a principal at Offit Kurman and has provided counsel to businesses and business owners for more than twenty-five years. He has extensive experience in the purchase and sale of businesses, structuring ownership agreements, and advising companies in financial distress.
ABOUT OFFIT KURMAN
Offit Kurman is one of the fastest-growing, full-service law firms in the Mid-Atlantic region. With over 170 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well positioned to meet the needs of dynamic businesses and the people who own and operate them. Our ten offices serve individual and corporate clients in the Maryland, Delaware, New Jersey, and Northern Virginia markets, as well as the Washington DC, Baltimore, Philadelphia, and New York City metropolitan areas. At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we consistently maintain our clients’ confidence by remaining focused on furthering their objectives and achieving their goals in an efficient manner. Trust, knowledge, confidence—in a partner, that’s perfect.
You can connect with Offit Kurman via our Blog, Facebook, Twitter, Google+, YouTube, and LinkedIn pages. You can also sign up to receive Law Matters, Offit Kurman’s monthly newsletter covering a diverse selection of legal and corporate thought leadership content.
MARYLAND | PENNSYLVANIA | VIRGINIA| NEW JERSEY | NEW YORK | DELAWARE | WASHINGTON, DC