The FTC continues to ramp up its merger review. Of late, raising the threshold of antitrust review, meaning more deals go unreviewed; announcing substantial (and contested) changes to non-compete clauses, while providing for a “sale of business exception;" investigating serial acquisitions and roll-up strategies; and more.

Our respondents feel the pressure—and are taking action as a result. Over three-fourths say dealmakers have increased their emphasis on due diligence in the past 12 months (80%) and that regulators have increased their scrutiny of M&A deals (77%). In the year to come, 75% say they will increase their emphasis on due diligence, 68% say regulators will increase their scrutiny of M&A deals, and 56% say the FTC merger review process will impede deal activity.

Certain sectors, like energy and healthcare, will be particularly affected, be it calls for an FTC probe of consolidation in the oil and gas industry or the spotlight on care outcomes as a result of healthcare M&A. Further, the FTC has made public a focus on private equity’s involvement in healthcare. And an increasing number of states have passed or are considering laws that require advance notice to state regulators before certain healthcare transactions are closed. Nearly 70% of healthcare respondents expect the FTC’s merger review process to impede activity.

“The FTC is particularly concerned about consolidation in the healthcare industry, having launched a portal dedicated to the reporting of anticompetitive practices across the sector,” says Jeanne Whalen, a Member at Dykema who regularly advises on healthcare and technology-related transactions. “As M&A activity in the sector continues to accelerate to drive efficiencies, dealmakers will have to balance these opportunities with comprehensive due diligence processes.”