Reduction in Burdens or More Headaches? FTC to Change HSR Act Premerger Notification Form and Rules

The Federal Trade Commission (FTC) has announced that it is proposing changes to the Hart-Scott-Rodino Act (HSR Act) premerger notification form and rules. Almost every aspect of the form will be affected in some way. With one or two exceptions, noted below, the proposed changes will reduce the burden on filing parties, particularly for acquisitive clients such as private equity firms and strategic buyers who are active in mergers and acquisitions.

No longer will a filing company's finance professionals need to dig up 2002 revenue broken down by the North American Industry Classification System (NAICS) code for businesses not even owned in 2002 nor will a private equity fund be required to collect the most recent nonpublic balance sheets from every company in its portfolio.