The Federal Trade Commission recently announced a new “Model Timing Agreement” for merger investigations. This new agreement outlines the timelines and procedures for the FTC’s investigation of mergers, acquisitions, and joint ventures.
The Model Timing Agreement aims to streamline the process for merging companies and reduce the amount of time it takes for the FTC to complete its investigation. The agreement includes several provisions that outline the steps that the FTC will take during the investigation, as well as the deadlines for each step.
Under the new agreement, the FTC will conduct its preliminary investigation within 30 days of receiving the notification of the proposed merger. After this preliminary investigation, the FTC will either move forward with a more in-depth investigation or terminate the investigation within 90 days.
The agreement also includes provisions for the companies involved in the merger. Companies will be required to provide the FTC with all relevant documents and information within 10 business days of the initial notification. Additionally, companies will be required to provide updates on the status of the merger every 30 days.
The Model Timing Agreement is a significant step forward for the FTC, as it aims to provide more clarity and certainty for merging companies. By providing clear timelines and procedures, the agreement will help companies better understand the process and expectations for the FTC’s investigation.
For companies considering a merger, acquisition, or joint venture, it is important to understand the implications of the Model Timing Agreement. The agreement underscores the importance of transparency and cooperation with the FTC during the investigation process. Companies should ensure that they are providing all relevant documents and information to the FTC in a timely manner, and that they are keeping the agency informed of any updates or changes to the merger.
Overall, the Model Timing Agreement represents a positive development for both merging companies and the FTC. By streamlining the investigation process, the agreement will provide greater certainty and clarity for all parties involved. As a professional, it is important to understand the implications of the agreement for any companies that are considering a merger or acquisition.