Shareholder Activism: A Survival Plan

“If you look at the amount of US activist funds that are investing in Europe, it is around 6 times higher

than last year,” explained Malcolm McKenzie, Head of European Corporate Transformation Services at Alvarez & Marsal (A&M).

As Rio Tinto, Rolls-Royce and The London Stock Exchange all hit the headlines due to shareholder activism, we ask what marks a company out as a target.

Some of the key points include:

- What specifically are activists looking for when they identify target companies? A share price that is below what is expected is one factor, this means there is value to be released.

- Advice on how best to avoid activists and how to perform an ‘outside-in’ analysis of your organisation. This entails asking challenging questions such as: what would an activist do differently and what would a private equity owner do if they owned the business?

- The importance of creating a robust, well coordinated communication strategy that does not rely on one spokesperson. This could involve inviting NEDs to sit in on broker meetings and meet investors.

- Tips on how to engage with activists and how to fight back if they do target your business.

Featuring commentary from:

Paul Kinrade, Managing Director UK, A&M

Malcolm McKenzie, Head, European Corporate Transformation Services, A&M