Market analysis as support for application to antitrust authorities | CIVITTA

Market analysis as a support for the application to the antitrust authorities

Our client, a company from the manufacturing sector, planned to acquire another firm operating in the same market. To achieve the goal, the client had to meet the antitrust authorities’ requirements. CIVITTA supported the project by providing market analysis, including data about market size and market share.

Market analysis before applying to the antitrust authorities

Our client planned an investment involving the acquisition of another company operating in Poland. Notification of such a transaction to the Polish antitrust authorities is obligatory when all participating companies' turnover in Poland exceeds EUR 50 million. The submitted application should present the market share of a given organization after the concentration. Our client needed support in the preparation of such estimates in order not only to assess the chances of a positive decision of the antitrust authorities but also to prepare the application itself.

CIVITTA approach: collating data from various sources

To conduct reliable and in-depth research, we decided to work closely with our client and benefit from their market knowledge.

The first stage included an analysis of the market size. Using the available statistical data, reports and customer knowledge, CIVITTA team have prepared reliable market size and value estimates for selected countries. Due to the requirements set by the Polish antitrust authorities, the geographic area of the analysed market covered the territory of several countries, not strictly coinciding with the administrative borders. Such an approach required additional regional analysis and consideration of important factors affecting the analysed product's demand.

The next step was to estimate the total volume and value of sales of the client and the target company in the analysed territory. The data achieved made it possible to calculate market shares. Additionally, CIVITTA analysts verified the sensitivity of these estimates to potential changes in the analysis parameters.

The last stages aimed at comparing different perspectives and scenarios so that the documentation showed – as precisely and unambiguously as possible – market share after the planned acquisition. In this project, it was essential to present the analysis's results and precisely describe the method of obtaining data, its sources, aggregation and analysis, and the final interpretation of the results. This stage brought a significant challenge due to limited access to data and the need to use simplifications or assumptions that translated into more or less conservative scenarios.

Market analysis as the basis for taking further steps

The estimates presented in the CIVITTA report gave the client an answer about the chances of obtaining a positive response to their application addressed to the antitrust authorities. It allowed to plan and take further steps in this regard. The results could also be used while submitting the application – as a report prepared by an independent consulting company.

Analyses prepared for applications required by official bodies differ significantly from typical market analyses. Their main goal is to present results resistant to possible objections from these bodies. Hence the methodological and analytical side is critical here, as well as indicating to the client any inaccuracies in his previous analyses.

Is your company planning to expand its shares by merger or acquisition? Let's discuss how CIVITTA can help you better prepare for the transaction thanks to professional, independent market analysis!

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