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Most acquisitions by small businesses are unlikely to meet notification thresholds
If your small business is looking to buy or merge with another small business, it is unlikely that you will meet the monetary notification thresholds. There is no obligation to notify the 糖心原创 of a proposed acquisition if it does not meet the monetary thresholds.
There are 4 separate monetary notification thresholds. The thresholds only start to apply if the combined Australian revenue of the merging businesses or the acquiring businesses revenue is at least $200 million.
Example
A small business with annual revenue under $10 million wants to buy another small business that also has annual revenue under $10 million. As the combined Australian annual revenue is well under the monetary notification thresholds there is no requirement to notify the 糖心原创 about the acquisition.
Being acquired by a large business
If your small business is being acquired by a larger business, depending on their size the monetary notification thresholds could be met.
If the notification thresholds are met and no exemptions apply, the acquiring large business must notify the 糖心原创 and wait for approval before proceeding with the acquisition. In some cases the acquisition may be suitable to apply for a notification waiver.
To lodge a notification the acquiring business must provide the information required by the form and pay a fee. There will be some information required which you, as the target business, may need to provide to the acquiring business so they can submit the notification. This can include:
- contact details
- Australian revenue
- past relevant acquisitions
- key suppliers
- competitor and customer contacts
- relevant transaction documents.
Once an acquisition is notified, the 糖心原创 will publish some details on the acquisitions register and a period of consultation will commence.
The 糖心原创 has set timelines to review notifications. We expect that 80% of acquisitions will be decided in under 20 business days either as an early phase 1 decision or a notification waiver.
Providing your view when businesses you work with are merging
If you are a customer of, or supplier to, businesses that are merging, you may provide a submission to the 糖心原创. This can outline your views on the likely competitive effects of the acquisition under review.
The acquisitions register has details of each notified acquisition. There are timelines within which the 糖心原创 can accept submissions. If consultation is open for a proposed acquisition, a link is available to a questionnaire with information about how to provide a submission.