NEW PAPER ON SSRN:
The wealth-creating engine of capitalism is the movement of assets to higher-valued uses. Our biggest and most valuable assets, and those with the greatest wealth-creating potential are corporations. Antitrust law and practice work to facilitate this movement, while deterring the types of mergers which substantially lessen competition.
- acquisitions of technology companies are critical in creating the incentives to innovate—for technology ventures, exits via acquisitions are about five times more likely than IPOs. These exits create an ex-ante incentive to innovate.
- In addition, investors evaluate regulatory risks as part of their due diligence when considering an investment; excessive regulatory risks, like those posed by uncertain antitrust enforcement, can deter investors from investing, particularly in the early and growth stages of ventures.
Cost-Benefit Analysis Without the Benefits or the Analysis: How Not to Draft Merger Guidelines