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Be your own activist
Developing an activist mindset to meet the demands of activists and simultaneously drive shareholder value
Activist investors have changed the corporate landscape, particularly for large corporations, in the United States and now, as the US market becomes more highly valued owing to the long bull market, and more crowded with activist rivals, they are turning more to other developed markets such as those of Europe, Canada, Australia and Japan. Prepare yourself by developing your own activist mindset.
Activism is here to stay
Activist investors have been operating in the marketplace for some time, but recently, the combination of a favourable regulatory environment and abundance of funds to invest, means that activists are here to stay.
Activists are better prepared than ever before, they spend considerable time undertaking sophisticated analysis to finesse their demands thesis and have stepped up their strategy by courting passive shareholders well in advance in order to influence crucial votes in their favour.
Executives and Boards who understand and apply activist techniques are better placed to meet the demands of activists and simultaneously drive shareholder value. This means they may look to understand the motivation of activists, ask some difficult internal questions about company performance and future direction, and then take concrete steps to improve shareholder returns.
These pre-emptive actions can demonstrate that management is listening to shareholders and is taking measures to achieve superior results.
Explore the report
- Part One examines market trends in activism and what companies might expect from activists in the near term.
- Part Two sets out the key points from discussions with former activists to get an insight into the activist mind-set.
- Part Three aims to provide companies with suggestions about the means with which they might choose to prepare for, and pre-empt, an activist campaign.