Competition & Regulatory Economics
Economic insights to
support strategic business
and policy decisions.
Merger and acquisition transactions represent complex endeavours that require careful navigation of financial, operational, and regulatory factors. Vincents’ experts have extensive financial accounting, forensic accounting, transaction advice, and insolvency experience with which to serve as trusted partners on prospective mergers and regulatory investigations. Our specialists can assist with analysing the parties’ cost structures, merger synergies and efficiencies, and the target firm’s financial condition.
We have practical experience working as advisers to clients on a range of strategic transactions. Our specialists have also worked as economic consultants on large domestic and international mergers and regulatory investigations, including those in the United States. We understand the pressures involved when working on time-sensitive transactions and serve our clients in an expedient and responsive manner.
We provide the following services:
Strategic transactions are often motivated on the basis of cost savings made possible through consolidation. Stakeholders require a clear understanding of the basis for efficiencies estimates and the nature of the anticipated cost savings. Our specialists have applied their cost accounting expertise to both consulting and litigation engagements.
Scrutinising value proposition assumptions and understanding financial risks is an important step in the transaction process. Due diligence thus requires an iterative and multi-disciplinary approach to ensure that the process is rigorous. Vincents has extensive forensic accounting, tax, insolvency, and financial statement analysis experience and expertise with which to assess the financial health and solvency position of the target firm.
We can assist government clients where economic arguments and detailed costs analyses are used in the regulatory and policy making process. Our specialists can apply their skills to inform pricing/fee decisions, cost-benefit inquiries, and cost sharing arrangements.
- Analysis of the cost structures and cost compatibility of merging parties.
- Analysis of the nature of claimed cost reductions (e.g., fixed versus variable).
- Analysis of pre-merger operating cost trends.
- Analysis of margins and unit prices.
- Analysis of post-merger restructuring plans, including an assessment of any up-front costs and timing associated with those plans.
- Analysis of the financial performance of previous mergers conducted by the individual parties.
- Analysis of financial statements, accounting databases, and managerial reports to evaluate the financial health of a target firm.
- Analysis of direct and indirect costs related to providing infrastructure and government services.
- Analysis of cost allocation methods used to allocate shared costs among diverse users.
- Analysis of costs to inform cost-benefit analyses in support of government decision-making.
- Analysis of governance issues arising in mergers, acquisitions, hostile takeovers, asset sales, spin-offs, financing, and other transactions.
- Analysis and valuation of individual assets to satisfy corporate, regulatory, and reporting requirements.
Our specialists have managed large and complex merger investigations in close cooperation with clients, analysed cost and efficiency estimates, and evaluated the financial health and solvency position of target firms. We can support all stages of a prospective merger and assist with regulatory requests for information, including assisting with accounting data and document production. We also have experience with conducting cost and benefit analyses to assess business and regulatory cases for specific projects and policy options.
Vincents has a unique ability to leverage its internal network of specialists and subject matter experts. Our customised teams can navigate accounting and business records and have experience in forensic accounting and interviewing techniques. This allows them to develop unique insights into the operations and cost characteristics of individual organisations and to quantify specific value propositions of policy proposals, prospective mergers, and other strategic decisions.