Merger tools

We are experts in the economic issues, tools and procedures raised during merger investigations including:

 

  • Market definitions
    Our understanding of the economic principles underlying market definition, our experience in collecting and integrating diverse data from multiple sources and our proficiency in applying sophisticated quantitative techniques to the data allow us to present robust market definition studies in a variety of environments. We are skilled in applying a variety of well-established methods such as a SSNIP test, critical loss analysis and geographic market definition based on transportation costs. Most cases require the development of adapted techniques that specifically fit the case.
     
  • Differentiated products
    When defining market boundaries is not enough, for differentiated products we are skilled in applying a number of tools to assess the degree of substitutability between products of merging parties using a variety of statistical techniques, such as the estimation of diversion ratios, cross-price elasticities of demand, hedonic price indices or upward pricing pressure indices.
     
  • Bidding markets
    We have extensive experience in analysing our clients' databases of orders, bidding and procurement information to assess past customer switching behaviour and to verify if the direct competition between merging parties has influenced the transaction prices in the past, which are usually indicative of the existence of competitive pressure between merging parties.
     
  • Non-horizontal theories of harm
    Our economists have been involved in a number of high-profile mergers with non-horizontal concerns comprehensively presenting and rebutting sophisticated theories of competitive effects related to potential foreclosure, leveraging market power between markets, conglomerate effects and providing decisive empirical evidence supporting these theories.
     
  • Merger simulation
    Our economists are experienced in applying insights from the industrial organization literature, existing industry market structures and econometric techniques to build merger simulation models that allow more sophisticated estimates of the likely impact of a merger on prices. 
     
  • Price correlation analysis
    We use price correlation analysis as a helpful tool to assess both the product and geographic definitions of the relevant markets and to properly interpret the results in the context of a more general competitive assessment.