FTI CONSULTING HELPS TO EVEN THE ODDS FOR YOU
FTI Consulting provides a comprehensive approach for its clients. In the early stages of activism, it is vital to have the right processes in place to monitor and control any activism that may take place amongst shareholders. FTI Consulting’s preparedness offerings are a complete and multi-faceted package of services that create preventative measures to help stop any unwanted activism from occurring.
How do Activists identify target companies?
Understanding how different activists think is the first step to identifying areas of vulnerability within a company. In surveying over 100 institutional investors, representing almost $1.7 trillion in assets, FTI Consulting found that the top three reasons for a company to become an activist target are poor stock performance, inefficient capital deployment and poor corporate governance. FTI Consulting’s Preparedness Offerings provide customized packages to meet unique needs.
What do Activists Want?
Activists all have one goal: to increase the value of their investment in the company. After conducting extensive research, the activist will then obtain a stake in the target company. Traditionally, the market and the SEC have viewed a 5% stake in a company as a threshold of influence in a company. Through the use of media, activists have obtained enough influence to pressure boards to acquiesce to their demands.
How FTI Consulting Prepares You
FTI Consulting’s Activism and M&A Defense practice harnesses the advisory services needed to assess a company before an activist arrives in order to eliminate potential areas of improvement that an activist might target.