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Interview Techniques. By Dr. Kenneth L. Danger Presented at the OECD-Korea Regional Centre for Competition. Information sources. Why interview?. A lot of information can be learned quickly about complex production processes or a variety of geographic areas Merger clock is ticking
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Interview Techniques By Dr. Kenneth L. Danger Presented at the OECD-Korea Regional Centre for Competition
Why interview? • A lot of information can be learned quickly about complex production processes or a variety of geographic areas • Merger clock is ticking • US - 30 days for initial investigation from time of filing • EU – 25 days, extensions are possible if remedies proposed • Many interviews can be conducted and results pooled if applicable • Salient facts can be learned and theories tested • Learn background information on industry history and events can lead toward hypothesis tests • E.g., Did the entrance or exit of a competitor impact price? • Better understand market
Customer Interviews • Identify Customers Affected by Transaction • Get a list from the parties early • Customers can provide information on • Product and geographic market • Competitive effects • Market participants and shares • History of market developments • Entry • Efficiencies benefits from previous transactions
Competitor Interviews • Typically a good source of information about industry and market players • Can provide information on product and geographic market • Market participants and shares • Information about capacity, output, margins, price setting practices, efficiency of supply • Entry and expansion possibilities in response to price changes • Niche players
Industry Expert Interviews • Can learn a great deal about industry and market participants • Likelihood of entry and expansion • Significant events that may have affected price • Potential fact witness
Ex Employee Interviews • Can provide detailed understanding of competition between companies • Insiders perspective • Significant events and responses • Price setting practices
Current Employee Interviews • Formal process in US • Employee under oath • Can be transcribed or video taped • Can be used in court
Interviews In General • Create an electronic document of general questions that seem to come up over and over again. • Can be helpful to have a set of questions for competitors and another for customers • Group your questions under general headings • Background of interviewee • Product Market • Geographic Market • Diversion, margins, capacity and expansion
Preparing for the Interview • From your general questions drill down to get to the specifics that the person interviewed might know • Ask yourself what do I want to learn from this person?
Conducting the Interview: The Beginning • Let the interviewee know • That this is but one of many interviews • Standard procedure (assuming it is) • Information is confidential (Is it?) • US – “We don’t tell anyone we have talked with you. We can’t tell you who we talked with” • US – Strong legal protections on disclosure • Interview is not being recorded or transcribed but people do take notes • When the interviewee is hesitant to provide information, letters from the authority addressed to counsel or the interviewee can cite relevant statutes • Very last resort: Explain that information can be obtained through compulsory processes. At times interviewees will prefer compulsory process as they may feel that legal protections under it are stronger • US – Civil Investigative Demand • Explain that the purpose of the interview is to learn about the merits of a transaction, the market and the industry • Introduce each and every participant. If someone joins late introduce them as well.
First questions • Start with background questions • Interviewee background • Experience, years employed in that position, prior experience, who else has held your job, who do you report to, etc. • Company background • Total revenue of company, revenue of relevant product, units sold of relevant product, number of different models, etc.
How to Ask Questions • Use open ended questions to get more information • Who? What? Where? Why? When? How? • Follow up to make sure you understand • How do you know that? • If the interviewee doesn’t know an answer to your question ask who would know or what documents speak to that issue
Ending the Interview • Ask interviewee • Is there anything else you would like to add? • Anyone else you think we should talk with? • What is your opinion on the transaction?
Debriefing After Interview • Confirm facts with those that attended the interview • Ask yourself would obtaining an affidavit significantly aid the investigation • Very Important: Write up an interview report • Even if the merger is not challenged this interview could provide information for future investigations • Make sure each member of the team gets a copy of the interview report so that facts can be checked for accuracy.
Group Work: Formulating Interview Questions • Do not ask deep background questions about interviewee experience. • Try to obtain information that you think is useful for understanding the merits of this transaction • Interviews last 20 minutes. Not a lot of time. • Rotation system after 20 minutes • Group 1 team moves to interview group 2 person. Group 2 team moves to interview group 3 person. Etc.
