The hot trend in private equity is rolling up companies that provide local services. With limited safeguards to curb market power, this will likely result in higher prices for consumers across various industries.
The FTC focuses on large mergers that affect national markets. Mergers >$126 mil must notify federal regulators. With most local consolidation below that, PE can aggregate market power in localized industries without regulators even knowing it's happening.
Historically, PE focused on combining already scaled companies. With fewer national targets and stricter FTC scrutiny on big deals, PE is now eyeing small, owner-operated businesses with a local customer base. Examples include physician practices, vet clinics, car washes, HVAC, home and auto repair, optometrists, preschools, etc.
Scale can have benefits through more sophisticated business practices, lower costs, and customized tech into family-owned small businesses. But consolidation can also lead to abuse of market power. For example, much of the "value creation” in physician consolidation was more aggressive billing practices and stronger leverage on reimbursement negotiation. Prices went up as the market share increased.
Many states have antitrust statutes but state regulators are seldom equipped to enforce them. Some states are starting to require premerger notifications on health providers, for instance, but the issue is much bigger. Regulatory oversight in small business consolidation remains minimal—even though market power in localized industries can hurt consumers just as much as national ones.
I would trust DOGE more if they started at the top with the $64 billion in PPP fraud instead of instantly nuking humanitarian efforts for babies in Africa.
who does that.
My annual decarbonization presentation is here.
200 slides, covering everything from water levels in Lake Gatún to sulfur dioxide emissions to ESG fund flows to Chinese auto exports to artificial intelligence.
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@jjacobs22 As someone also starting a company and trying to learn how to unlock these tools to accelerate our work, I'd love to follow along more closely with what you're learning from and finding useful. Thoughts on setting up a group of entrepreneurs who are all on this journey?
My god, the US is really going to give billions of our money to the killers and cut off food for the starving population. What kind of twisted homicidal madness is this?
Among other new findings, @thelisagraves brings the goods with an updated tally of $93 MILLION in contracts paid to Leo's for-profit PR firm by dark money nonprofits he funds with "charitable" donations. This is the subject of the D.C. Attorney General's investigation into Leo.
It's vital that people understand this thread, because it contains the solution to the climate and ecological crisis. It is the culmination of decades of research and thinking, but I don't know if I will manage to convey the meaning of what has been overlooked. I may fail.
1/🧵
There is a horrific humanitarian disaster in Gaza. The U.S. should not provide another nickel to the Netanyahu government unless there is a fundamental change in military policy and their response to the humanitarian crisis.
📣 Same mission, new name. 📣
The 4 Day Work Week Campaign is rebranding as WorkFour! Thank you for your continued support as we grow our movement!
#WorkFour#FourDayWorkWeek
Excited to announce the launch of the Creator Economy NYC newsletter — the place for all things creator economy in the Big Apple.
This isn't just another thought leadership newsletter.
It's community-focused, and you'll see that on display each week.
So here's what to expect:
This a beautiful and compassionate argument for the 4 day workweek from @ChrisMurphyCT and @TimRyan, and why I started the campaign for a 4 day workweek https://t.co/M0qOJmamz2
America is facing a spiritual crisis. More leisure time is the cure. https://t.co/cKvjZia4co
Music continues to be one of the most intriguing but concerning areas of AI in the arts. Look at what Google dropped today: https://t.co/Vctqucxft2
Soon, I fear many concerts will be musicians who pay large corporations for the right to perform popular AI generated songs live.