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Finance and Valuation

Bringing multi-disciplinary insight to your financial challenges

For almost 40 years, Oxera has had a strong reputation for solving challenges relating to financial economics and valuation in regulatory, competition, and litigation settings.

Our expertise spans multiple fields of applied economics and finance, including valuation analysis, behavioural finance, corporate finance, capital markets, and corporate governance.

This blend of specialist skills and knowledge, alongside our deep links with leading finance academics, has earned the trust of policymakers, regulators, competition authorities, and courts and arbitration panels throughout Europe.

Always at the cutting edge

Our team of consultants has driven successful outcomes in regulatory advice, state aid proceedings, commercial disputes, and mergers and acquisitions.

We’ve been involved in major price control processes across Europe since the late 1980s, providing advice to regulators and regulated companies. Our recent regulatory projects have helped clients in the UK, Italy, Germany, France, the Netherlands, Portugal and Spain, as well as further afield.

Our unrivalled state aid expertise has seen us involved in high-profile cases across a number of sectors across Europe, including energy, financial services, pharmaceuticals, post, sports infrastructure, telecoms, and transport. In particular, we have advised clients on economic and financial analysis associated with a wide range of state aid matters in over 15 EU member states, as well as in the UK.

Our experts have provided testimony in court cases in various countries (including Australia, Canada, China, and the USA) and in international arbitrations across all major forums (ICC, LCIA, PCA, SCAI, and ICSID) in London, Paris, Zurich, and the Hague.

Our services in finance and valuation

We can assist with:

  • regulatory finance strategy and advice
  • economic and financial analysis in state aid assessments
  • financial analysis in competition law cases, including Article 101 and 102
  • valuation and damages estimation in commercial disputes
  • valuation, profitability, and cost allocation advice in market investigations
  • due diligence and transactions-related advice
  • investment and risk appraisal in relation to commercial strategy
  • advice on corporate governance impact on markets and valuation
  • quantification of scenarios in impact assessments
  • analysis of capital markets microstructure

Oxera’s experience

  • we work for regulators and regulated companies around the world, driving major regulatory decisions. We are at the forefront of the debate in issues in relation to the cost of capital and the financing of network companies
  • we undertake financial analysis to assist clients with an extensive range of state aid matters across the EU and in the UK, including state aid investigations of tax rulings and quantification of damages following illegal state aid
  • we have authored groundbreaking reports advising competition authorities on the use of financial tools in anticompetitive cases; we have extensive experience in, and understanding of, how competitive benchmarks are established and estimated
  • we advise investors on due diligence and valuation issues in the context of transactions, including development and application of detailed financial models for asset valuation, regulatory analysis, analysis of financial claims, debt capacity, and risk allocation
  • we advise regulators and private-sector clients on cost allocation methodologies, the use of transfer pricing policies and segmental profitability in multiple settings; this includes policy development, competition law, commercial strategy and regulatory advice, as well as support in market and state aid investigations. Examples include: advice on the economic profitability of retail banking business models, advice to financial services firms on cost allocation and transfer pricing arrangements, and analysis of whether transfer pricing policies are in line with market rates for competition investigations
  • we submit expert reports on valuation and damages quantification issues in a wide variety of litigation and arbitration matters; we have provided compelling expert testimony in front of courts and arbitration panels in Australia, Canada, France, Germany, Hong Kong, Italy, the Netherlands, New Zealand, South Africa, Spain, the UK, and the USA

Your systematic thoroughness, quick availability and high professionalism is and has always been impressive. I am glad that I have had opportunity to work with such a professional team.

- Riina Kai, CFO, AS Tallinna Vesi

Finance and Valuation Insights

Due to the COVID-19 crisis, the European Central Bank (ECB) projects a sharp rise in non-performing loans (NPLs). In late 2020, the European Commission published an action plan for tackling…
In May 2021, Ofwat, the economic regulator of the water industry in England and Wales, set out its vision for the next price review (PR24). Key themes are long-term planning,…

Allowed cost of equity for German energy networks

The fourth regulatory period for energy networks in Germany begins for gas networks in January 2023 and for electricity networks in January 2024. In this context, Oxera has been advising the networks on regulatory price-control parameters. One of the areas of ongoing debate is the regulated cost of equity for… Read More

Image depicting Allowed cost of equity for German energy networks

EffizienzApp: strategy, planning and management made easy

TOTEX benchmarking is at the heart of incentive regulation in German energy markets. Yet it remains a ‘black box’ with highly uncertain, and sometimes unusual, results for grids. With the European Court of Justice expected to allow broader discretion and independence to the Bundesnetzagentur, could TOTEX… Read More

Image depicting EffizienzApp: strategy, planning and management made easy