Done Deal – Insights from our M&A and Activism team – January 2024
Insights from our M&A and Activism team
Welcome to our first Done Deal of 2024!
Our recently promoted Senior Managing Director and UK Head of M&A and Activism, Alex Le May, sets the tone for an action-packed year ahead. Our team then look at 7 ways companies’ cyber-related governance disclosures will evolve post-SEC rule change. We also share a quick interview with our most recent joiner, Tanner Kaufman, who joins us this month as a Managing Director in New York City.
Finally, our M&A and Activism team will be attending the 36th Annual Tulane Corporate Law Institute, the premier M&A, corporate and securities law conference in the United States in March. Let us know if you will be attending!
The Year Ahead – M&A and Activism in 2024
7 Ways Companies’ Cyber-Related Governance Disclosures Will Evolve Post-SEC Rule Change
The increased frequency and severity of cyberattacks has resulted in increased pressure on companies at a global level to prepare for, mitigate against, and disclose the impacts of these attacks. This pressure may be most clearly illustrated by the SEC’s recently adopted rules around incident disclosure. Beyond the SEC, investors have also recognized the increased importance of portfolio companies successfully overseeing and managing cybersecurity risks. Large investors and their stewardship teams, as well as proxy advisors, are rapidly evolving their expectations for Boards and management teams to demonstrate robust cybersecurity programs are in place.
We share seven ways cyber disclosures of publicly traded companies should evolve to meet investor expectations.
What We’re Up To
Meet our Team: 30 seconds with Tanner Kaufman
What is your focus area at FTI Consulting?
At FTI, I focus primarily on M&A, shareholder activism defense, short attacks and other event-driven communications across all sectors and sizes of companies. I have significant transaction experience, from large transformative deals and go-privates to smaller, bolt-on acquisitions, and look forward to supporting clients’ communications needs from launch through the integration process. I will also be working with companies to optimize private and public engagement with shareholder activists and other vocal institutional investors. I also bring substantial crisis and hostile M&A experience and will be helping clients with preparedness and response efforts.
What M&A trends are you seeing in your marketplace?
In 2024, despite the ongoing inflation and recession fears, as well as uncertainty given the election year, M&A is going to be an even more important catalyst for companies seeking profitable growth, particularly given the anticipated low-growth economic environment in the U.S. and globally. M&A increased significantly in the fourth quarter of 2023 and given the stabilization (and potential near-term reduction) of interest rates, I believe that U.S. and cross-border M&A activity in 2024 will continue to increase as we move through the year.
There are a number of large companies with strong balance sheets that are actively looking for attractive acquisitions to augment growth in 2024. This includes large cap pharma and biotech companies seeking to reinforce portfolios to mitigate fast approaching patent cliffs and replace declining revenues, as well as energy, natural resource and industrial companies looking to strengthen their portfolios and revenues. Companies are also continuing to pursue portfolio simplification – exploring potential spin-offs and separations that enable them to further focus on the core and implement more tailored operational and capital allocation strategies. Healthcare and industrial companies accounted for nearly half of the separations in the last two years and that trend will likely continue in 2024 and beyond. On the PE front, firms have capital to deploy and we’re seeing continued strong interest in take-private transactions, which have exponentially grown in recent years.
Antitrust scrutiny of large transactions will likely increase in 2024, driven by the continued aggressive posture of U.S. antitrust agencies. The current rapidly evolving regulatory environment underscores the importance of a strong global public affairs strategy, particularly for large technology and healthcare companies pursuing M&A in the coming year.
What do you do outside of work that helps you reset and stay sharp for the next professional challenge?
As my clients can attest, I am very involved and connected 24/7, though I also take time to rest and reset. I have played piano since I was five – after a sustained break, I started playing again during the pandemic and it’s a great way to unwind after work. I am also an avid traveler – I just got back from a trip across South America where I visited Brazil, Chile and Uruguay, and I am constantly adding to my list of places to visit.
Learn more about Tanner’s recent appointment in our official press release here.
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 |
