From vets to dentists, Canada is heading toward entrepreneurial extinction – but there's a way for consumers to fight back, lawyer Rachel Wasserman explains
The province of Quebec is trying to help people who want to purchase an existing company and aren't private equity (repreneur) in a way that the province of Ontario isn't
The note correctly identifies the "thousand cuts" mechanism. The reason this strategy avoids scrutiny is structural.
Under the Competition Act, pre-merger notification is only required if a transaction exceeds specific financial thresholds. For 2024, the "transaction-size" threshold was held at $93 million. A private equity firm can acquire numerous small businesses, each valued well below this amount, without ever triggering a mandatory filing. This allows a roll-up strategy to consolidate a market incrementally, exactly as the note describes.
The province of Quebec is trying to help people who want to purchase an existing company and aren't private equity (repreneur) in a way that the province of Ontario isn't
The note correctly identifies the "thousand cuts" mechanism. The reason this strategy avoids scrutiny is structural.
Under the Competition Act, pre-merger notification is only required if a transaction exceeds specific financial thresholds. For 2024, the "transaction-size" threshold was held at $93 million. A private equity firm can acquire numerous small businesses, each valued well below this amount, without ever triggering a mandatory filing. This allows a roll-up strategy to consolidate a market incrementally, exactly as the note describes.
Source: https://www.canada.ca/en/competition-bureau/news/2024/02/pre-merger-notification-transaction-size-threshold-to-remain-at-93m-in-2024.html
Great interview, thank you.