Business experts say Biden’s regulations have stifled growth

The Biden administration’s aggressive regulatory stance toward big business has stunted growth, a cohort of entrepreneurs, venture capitalists and other business industry experts told Fox News Digital.

Earlier this week, Albertsons abandoned its $25 million merger with a peer grocery store The Kroger chain, after the Federal Trade Commission (FTC), led by President Biden appointee Lena Khan, tried to challenge the purchase, arguing that it would stifle competition and raise prices. The challenge and eventual failure of the merger is the latest example of the Biden administration’s offensive against big business.

“We’ve literally had offers from strategic buyers to buy us, and we go to our lawyer and the lawyer says, ‘Don’t even try. The FTC will absolutely flag this thing, and you’ll spend tens of millions of dollars and be stuck in bureaucratic hell answering questions in court for a year,” said venture capitalist Ravin Gandhi, a former CEO who has been involved in multiple merger and acquisition and holds a stake in a number of startups.

‘GOV’T KNOWS BEST’: BIDEN ADMIN BREAKS OBAMA’S RECORD FOR FILLING UP FEDERAL REGISTER WITH MOST REGULATION

“Lena Khan was explicit about even talking about mid-market M&A as a vehicle for monopoly. And anyone who’s built a business and sold it, like me, knows that’s ridiculous.”

The chilling effect described by Gandhi has been echoed by other analysts, who say the rhetoric and policies of the Biden administration have required companies to take matters into their own hands by exiting or restructuring their transactions. in the face of antitrust concerns from the FTC and the Department of Justice. An analysis International law firm Morgan Lewis found that under Biden, the vast majority (nearly three-quarters) of all transactions in which the government asked companies for more details about a proposed merger were subject to enforcement action.

“America wants a different option,” said Grant Cardone, CEO of Cardone Capital. “This idea that Joe Biden will make the world more competitive is a red herring.”

Cardone also expressed his frustration regulatory battles with the Biden administration, noting that they have made it “almost impossible for people to do business.”

Several other business leaders, venture capitalists and people with detailed knowledge of mergers and acquisitions echoed the concerns shared by Gandhi and Cardone that business growth has been hindered.

“The FTC’s aggressive antitrust enforcement under the Biden administration has significantly slowed M&A activity, particularly in the technology sector,” said Kison Patel, financial technology entrepreneur and host of “M&A Science.” a podcast about mergers and acquisitions. “For example, one Fortune 10 technology company has reduced its deal making from 30 to less than five deals.”

CONSTRUCTION TRADE LEADERS EXPECT NEW LEADERSHIP FROM TRUMP: ‘RELIEF ON THE HORIZON’

Armen Martin, a veteran mergers and acquisitions attorney, added that in talking to venture capitalists, he had heard optimism about FTC Commissioner Khan’s departure. She will be replaced by President-elect Trump’s nominee for FTC commissioner. Andrew Ferguson.

“I think you’re going to see a lot more M&A activity under the Trump administration as companies feel more confident that the government won’t get involved,” Martin said.

CLICK HERE TO GET THE FOX NEWS APP

Meanwhile, in a statement to Fox News Digital, FTC spokesman Douglas Farrar said the recently blocked grocery store merger “makes it clear that robust, reality-based antitrust enforcement delivers real results for consumers, workers and small businesses”.

“Today’s win protects competition in the grocery market, which will prevent prices from rising further,” he added.