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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

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Are sovereign yields the risk-free rate for the CAPM?

In a report produced for the Energy Networks Association, we reviewed the theoretical basis for the risk-free rate assumption in the CAPM and the reasons for why it could diverge from yields on government bonds. The prediction that the risk-free rate tends to be higher than the yield on government bonds – sometimes significantly so – is consistent with the way practitioners calculate discount rates and undertake valuations. Read More

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How can the DMA promote value creation in Europe’s digital economy?

How can the DMA promote value creation in Europe’s digital economy? Date: Wednesday 12 May 2021 Time: 16.00–17.30 CET, 15.00–16.30 GMT, 10.00–11.30 EST Join us for a panel discussion with expert academics and policymakers on how the European Commission’s proposal for a Digital Markets Act can be adapted in order… Read More

Image depicting How can the DMA promote value creation in Europe’s digital economy?