Compass Lexecon has evaluated thousands of proposed mergers and acquisitions across virtually every industry on behalf of both private parties and government agencies. Our experts are renowned for commitment to the highest quality work, experience framing merger review standards at regulatory bodies, and a track record of leadership of both academic and applied research on merger policy. We are retained to review horizontal and vertical mergers and acquisitions around the globe, with analyses tailored to the relevant jurisdiction(s) and regulatory regime(s).
We can advise on the competition aspects of transactions from conception to completion. As part of the deal process, we assist in five primary areas:
First and most importantly, we analyze from an economic perspective the implications of a transaction for competition and consumers. To do that, we develop a deep understanding of the relevant industry, the key drivers of competition, and the process by which competitive variables, such as prices, product characteristics, quality, and innovation are determined. Within this framework, we design and implement economic analyses – often involving complex econometrics – to assess the competitive effects of the transaction. These analyses may include pricing studies, customer switching analyses, bidding studies, SSNIP tests, merger simulations, entry/expansion analyses, and efficiency studies.
Second, if requested, based on the analyses we conduct, we can help assess antitrust risk for Boards of Directors and executives before a deal is signed to help them make informed business decisions.
Third, we present our analyses to the relevant regulators (or in court proceedings, if necessary) in clear and compelling ways. With our vast experience analyzing mergers, presenting the results of the analyses to regulators, as well as our deep experience testifying in litigation matters, we understand how to present sound economics – especially complex econometrics – in a way that is clear, powerful, and persuasive.
Fourth, we have a large team of economists who can assist counsel with responding to requests for information from the relevant government agencies, in particular with data preparation and production.
Fifth, if necessary in a particular transaction to protect competition, we help clients design remedies. We then present analyses of proposed remedies, including analyses of the financial strength of a potential buyer of the assets, to the relevant authorities.
We have deep experience working for both the buyer and seller in deals, as well as being jointly retained by both/all parties to a transaction, working for a private third party on a transaction, or being retained by the antitrust regulators to analyze the competition effects of a transaction. Our clients value our depth and breadth of experience.
We are uniquely well-equipped to advise on the largest multi-jurisdictional deals, in which we mobilize a global team across our offices in the U.S., Europe, Asia, and South America. We also advise on a large number of deals within each of those jurisdictions directed by economists with significant local-level expertise, including ex-officials from the U.S. DOJ, U.S. FTC, the European Commission’s DG Comp, and the UK, French, and Hong Kong authorities, among others. As a result, we are able to match the right experience to support clients throughout the merger control process, regardless of the size, industry, or nature of the deal.