FREE online courses on Mergers & Acquisitions - Chapter 2 - Notifying the FTC and USJD

 

The FTC (Federal Trade Commission) and the USJD (United States Justice Department) become involved within the merger and acquisition process by way of the "16 Page Form." The 16 Page Form is filed with the FTC and USJD whenever a merger involves one company with $ 100 million or more in assets or sales and the other company has $ 10 million or more in assets or sales and the transaction involves an offer of $ 15 million or more in assets or stock or the transaction involves more than 50% ownership of a company with $ 15 million or more in assets or sales.

 

The 16 Page Form requires disclosure concerning the type of transaction and a description of both companies. The 16 Page Form is filed by the acquiring company when it announces its tender offer to acquire the Target Company. Likewise, the Target Company must file a 16 Page Form within 15 days of the filing by the acquiring company.