Business experts say Biden regulations have stifled growth
The Biden administration’s aggressive regulatory stance towards big businesses has caused concern among entrepreneurs, venture capitalists, and other business sector experts. The recent example of Albertsons abandoning its merger with Kroger due to FTC intervention is just one instance of the administration’s offensive against large corporations.
Venture capitalist Ravin Gandhi expressed frustration, stating that the FTC’s scrutiny has made it almost impossible for businesses to pursue mergers and acquisitions. He mentioned that even mid-market deals are being flagged by the government, leading to bureaucratic hurdles and significant costs.
Grant Cardone, CEO of Cardone Capital, also criticized the Biden administration’s regulatory battles, claiming that they have hindered business growth and competitiveness. He believes that the government’s interference is preventing companies from thriving and expanding.
Financial tech entrepreneur Kison Patel noted that the FTC’s aggressive antitrust enforcement has dampened M&A activity, particularly in the tech sector. He mentioned that a Fortune 10 tech company has significantly reduced its deal-making due to government intervention.
Veteran mergers and acquisitions attorney Armen Martin shared optimism about the potential for increased M&A activity under the Trump administration. With Andrew Ferguson set to replace FTC Commissioner Lena Khan, businesses may feel more confident in pursuing transactions without government interference.
In response to criticism, FTC spokesperson Douglas Farrar defended the agency’s actions, stating that strong antitrust enforcement benefits consumers, workers, and small businesses. He highlighted that blocking the grocery store merger would protect competition in the market and prevent price increases.
Overall, the Biden administration’s aggressive regulatory stance towards big businesses has sparked debate and concern among industry experts. As the government continues to scrutinize mergers and acquisitions, businesses must navigate regulatory challenges to ensure growth and competitiveness in the market.
