What is a primary reason why regulatory reviews are crucial in the sale process?

Regulatory reviews are crucial in the sale process primarily because they can significantly affect the likelihood of closing a deal. These reviews assess whether the proposed transaction complies with legal and regulatory requirements, which may include antitrust laws, industry-specific regulations, and other considerations. If a deal is found not to comply with these regulations, it could be blocked or delayed, resulting in uncertainty about the transaction's completion.

Therefore, a thorough understanding of potential regulatory hurdles and the need to satisfy regulatory bodies is essential for both buyers and sellers. Engaging with regulators early in the process can provide insights into potential issues and facilitate smoother negotiations, thus increasing the chances of a successful deal closure. This understanding is vital for parties involved in M&A to gauge the potential risks and prepare accordingly.