Activism Landscape
The activism landscape is always changing and Georgeson is here to help you navigate. The Georgeson team is composed of experts that bring investor, issuer, and proxy solicitation perspectives to assist our clients achieve optimal outcomes. Activist situations are unpredictable, which means companies should be prepared at any time. Having an experienced adviser such as Georgeson at your side throughout the year will help you alleviate the effects of an unexpected situation. Some of the below statistics demonstrate that activism is not limited to certain sectors, market caps, or desired activist outcomes.
Georgeson Approach
Georgeson can assist you regardless of what stage of activism your company faces. However, we strongly recommend you prepare well before an activist arrives or begins to agitate. The activist investor will have very specific demands, which may or may not align with long-term institutional investor views. In most cases, the larger long-term shareholders should have the most influence on the strategic decisions of the company. Our investor-centric approach will help you navigate the interests of your long-term shareholders and address the activist as necessary.
Summary
Ultimately, the goal of activist preparation is to mitigate risk, build strength and establish credibility in the marketplace. Waiting to take action until after an activist agitates puts the company at a disadvantage. It enables an activist to claim credit for seeking to increase shareholder value while making the company appear reactive. And in today’s environment, the conventional responses – just “saying no” to an activist or relying on legal protections such as a rights plan or staggered board – are unlikely to work. At the end of the day, it is critical to effectively communicate and understand your shareholders’ views on your corporate strategy and corporate governance. This is what is likely to make or break a contested situation.
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