Shifting Sands, or Quicksand? Mergers and Acquisitions in a New Political Climate

Welcome to the April 2025 edition of our newsletter!  In this issue, we’ll examine how antitrust enforcement trends can serve as an indicator of the deal-making climate.

Vox Populi, Vox Negotium?  How Supposedly Populist Policy Affects Business Transactions

As a new political administration attempts to establish its allegedly populist economic platform, the question of how this will affect corporate deal-making is high on the list of unresolved issues.  The U.S. Justice Department continued the Biden administration’s antitrust case against Google concerning its advertising practices, indicating that hopes for a less heavy regulatory hand from the new administration may have been premature, at least in some instances.

This raises some new concerns for client companies seeking to acquire other firms.  Perhaps more than in past years, federal lobbying activity becomes a relevant data point – does a target company have legislative affairs teams and/or outside lobbyists, and if so, how are they perceived as far as reputation and effectiveness?

Additionally, with tariff walls being erected in the name of supposedly unfair trade, cross-border mergers or acquisitions have become more complicated.  As a corollary to the domestic lobbying aspect, due diligence would also include a look at Justice Department Foreign Agent Registration Act filings, as well as any politically sensitive matters like those raised by the Committee on Foreign Investment in the United States, which has become a politicized weapon of the anti-free trade bloc of both political parties.  Finally, foreign corrupt practices – which can be used to rally public support against multinational deals  — should be scrutinized in advance, from the flimsiest accusation to legitimate enforcement actions.

After the new administration’s first 100 days, the climate for deal-making seems to be mostly what was promised, but not what was expected.  That disconnect can be a costly one, but diligence and preparation can help your clients avoid pitfalls and find paths to long-term profits via M&A in any environment.