Analysis of Synergies

In an acquisition, firms typically create detailed financial models as part of their investment process. These models can provide clear insights into the intent of the acquirer. Our teams have the financial markets expertise to interpret the assumptions that are embedded in these models and the competition economics experience to explain their implications for antitrust regulation. CRA has used these models to investigate and provide powerful illustrations of the assumptions underlying valuation of financial synergies, a firm’s intent in the context of so-called “killer acquisitions”, and an acquiring firm’s intentions with respect to pricing post-merger.