Public interventions from activist investors across Europe show no signs of abating, finds this latest report from Alvarez & Marsal.
In this update, the performance and underlying dynamics of over 1,700 European companies are analysed to identify what makes businesses a target.
Key points include:
Greater age diversity on a Board can help deter activists, as long as the gap is not too wide. Activists may perceive Boards with very wide age ranges as being less able to reach agreement on strategic priorities. Conversely, a lack of age diversity may contribute to a lack of variety of thinking and consequent underperformance.
Activists are interested in good companies that could be great. Such businesses must plot and implement a route back to first-quartile performance without delay. Two years of weakened performance is more than enough for activists to launch an attack.