Shareholder activism has emerged as a conventional investment strategy, across all sectors. Activist hedge funds and the institutional investors who often follow their lead are generating positive returns, so we are likely to see continued activism ahead, and a steady rise in the associated assets under management.
While the mainstream media extensively covers campaigns against larger, well-known companies, much of the recent growth in investor activism has been related to micro and small-cap companies.
We proactively support companies in preparing for activism by:
- Counseling management and the Board on the activist perspective, common tactics and identifying where they may be vulnerable to activist attention.
- Providing intelligence on specific activists' characteristics and campaigns.
- Conducting a Perception Study to assess current investor sentiment.
- Tracking positions taken in companies by activist investors.
- Developing a plan to implement in the event of activist engagement.
To the extent an activist investor(s) engages with a company, we provide the following activism counsel and activism communications services:
- Recommend and collaborate with experts in the legal, proxy and investment banking fields (i.e. the advisory team).
- Advise management regarding initial communications in response to activist overtures.
- Communicate with non-activist shareholders to assess the level of support for the activist proposal and deliver an analysis of findings.
- Establish and implement a comprehensive communications plan that covers all phases of the activist campaign.