Smoluchowski's coagulation equation, with reaction rate K(x,y), describing the time evolution of a size distribution c(x,t) is studied in the presence of a mass loss term m(x) = mx (m>0). For K(x,y) = 1, c(x,t) is determined explicitly for arbitrary initial distributions. If K(x,y) = xy, we determine c(x,t) explicitly for arbitrary initial distributions and describe the behaviour of c(x,t) for large x, for all times. Here, we show that a phase transition occurs in a finite time
provided
. An investigation into
reveals that a phase transition occurs in a finite time
if and only if
and
. An estimate of the least upper bound for
is calculated, and the behaviour of c(x,t) for large x with
is presented.