Failing firms
Contents
Place in the Framework
The failing firm defense argues that the acquired firm's assets would exit the market absent the merger, so the transaction does not cause the alleged loss of competition.
Core Questions
- Is the firm unable to meet its financial obligations in the near future?
- Is reorganization or survival unlikely?
- Were reasonable alternative purchasers sought?
Working Notes
Add notes here on failing firm requirements, failing division arguments, and causation between the merger and competitive loss.