Corporate Governance & Activism

Done Deal – Insights from our M&A and Activism team – April 2024

Insights from our M&A and Activism team

Welcome to the latest installment of Done Deal! In this edition, Alex Deane, UK Head of Public Affairs and Senior Managing Director, discusses the crucial aspect of political due diligence in the M&A process in a short video. Following this, our team delves into an analysis of the burgeoning trend of high-profile hostile M&A activity, providing valuable insights to aid management teams in preparing for unsolicited bids. Lastly, Steffi Kim, Senior Director in our Frankfurt team, offers some brief reflections in this month’s colleague spotlight.

Expert Perspective: M&A and Political Due Diligence with Alex Deane

Raid Defense: Preparing Outside of Proxy Season

2023 saw a rise in unsolicited bid activity, and key factors in 2024 will only fuel its growth. Choice Hotels’ pursuit of Wyndham, JetBlue’s proposed acquisition of Spirit, and a four-way dance in the 3D printing space between Stratasys, Nano Dimension, 3D Systems, and Desktop Metal are only a select few of the extremely high profile “hostile M&A” fights we saw in 2023, with Choice and Wyndham even dragging into 2024 unresolved.

We see two main contributors to the dynamic: first, a significant valuation gap opening, often between companies that are well-capitalized and profitable, and those that are not. The second is a PE market that is flushed with cash at the top of the interest rate cycle. 

Our team discuss this further in the following article, while sharing six key takeaways that will help corporate Boards and management teams to be ready in the event a peer or a private equity firm decides to “go hostile.”

What We’re Up To

Meet our Team: 30 seconds with Steffi Kim

What is your focus area at FTI Consulting?

I’m based in our Frankfurt office, advising German and international companies in corporate reputation and capital market matters – with a particular focus on event-driven situations such as M&A transactions, IPOs, restructurings and shareholder activism. Over the past decade, I’ve helped clients on a large number of cross-border mandates, complex and transformative public takeover processes and highly contested deal situations in which our multi-stakeholder communications approach can make a real difference. 

What M&A trends are you seeing in your marketplace?

After two years of subdued M&A activity in Europe’s largest economy, we are more optimistic about the environment in 2024. More recently, we have seen a new momentum in large corporates planning to spin off or carve out parts of their business to focus on their core and improve valuation. In addition, there is an ongoing trend of financial sponsors taking companies private – an area in which our team has been very active in recent years. In these transactions, we have seen much more complexity in getting a deal to the finish line. Public and political scrutiny, regulatory hurdles, bumpitrage activists and competing bidders can put a transaction in jeopardy. In today’s fast-paced, interconnected world, it is critical to anticipate communication risks and threats, secure opinion leadership, and build support among diverse audiences.

What do you do outside of work that helps you reset and stay sharp for the next professional challenge?

Outside of work, I value activities that clear my mind and boost my energy levels. Spending quality time with my family and enjoying playing with my kids – two young boys, who not only help me relax mentally, but also keep me active and engaged. I also love being outdoors, going for a run, doing Pilates, or enjoying a nice dinner with friends. 

Contact Us

To be added to the distribution list for FTI Consulting’s M&A and Activism Insights, or for further information on the dedicated M&A and Activism team at FTI Consulting, please contact Edward Bridges ([email protected]) Pat Tucker ([email protected]) or Alex Le May ([email protected]).

The views expressed in this article are those of the author(s) and not necessarily the views of FTI Consulting, its management, its subsidiaries, its affiliates, or its other professionals. ©2024 FTI Consulting, Inc. All rights reserved. www.fticonsulting.com

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