FTC proposal would significantly add to M&A approval prep time

"The Pipeline" is a podcast hosted by S&P Global Market Intelligence that leverages industry sources, data and analysis to discuss M&A, IPOs and all things dealmaking.

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The amount of time it takes to meet premerger compliance requirements could skyrocket if US regulators move forward with a proposed rule that would overhaul the process.

On average, the number of hours spent completing the process would increase nearly fourfold to 144 from the current average of 37 hours, the Federal Trade Commission estimated in its proposal. Preparation time for some deals could rise by 222 hours, the FTC said.

But even those figures might underestimate the increased burden, according to Kara Kuritz, a partner in the antitrust practice at the law firm Vinson & Elkins. When trying to calculate the estimates regulators might have only captured the increased legal advisory time but not necessarily the time spent by the companies involved, Kuritz said on the latest episode of "The Pipeline."