Done Deal – Insights from our M&A and Activism team – June 2024
Insights from our M&A and Activism team
Welcome to the latest installment of Done Deal! In this edition Alex Le May, Tanner Kaufman, Millie Dent, and Mike Gaudreau discuss trends they are seeing throughout this proxy season. Following this, see takeaways from our team on if boards should start questioning their settlement behavior. Lastly, Garrett Muzikowski, in our New York team, offers some brief reflections in this month’s colleague spotlight.
Takeaways from the 2024 Proxy Season
Are Boards Settling With Activists Too Quickly? What Settlement Data Says About the Evolution of Activism
Since the introduction of Universal Proxy in August 2022, one of the most notable changes in shareholder activism has been the significant increase in settlements between Boards and activists. With heightened risks for individual directors in proxy fights, Boards have been more inclined to settle, and settle quickly. Counter intuitively, this has also corresponded with a time where management teams are winning decisively in proxy contests – seven of eight proxy contests held in the U.S. so far in 2024 resulted in full victories for management.
As we close out the 2024 proxy season, those in the activism defense world are starting to ask: are Boards settling too quickly?
What We’re Up To
M&A Award Recognition: Tanner Kaufman
Our colleague Tanner Kaufman has been named a 2023 “Emerging Leader” by The M&A Advisor. This award recognizes and celebrates the achievements of professionals who have made groundbreaking contributions to the fields of M&A, corporate finance and restructuring, and whose significant level of success while still under the age of 40, establishes them as the industry’s emerging leaders.
Val Mack at NACD’s Lead with Impact Symposium
This month, our colleague Valerie Mack had the opportunity to speak with the NACD (National Association of Corporate Directors) (NACD) at their Lead with Impact Symposium, in a panel titled, “The New Barbarians at the Gate: A live-action walk through on how non-traditional activists are targeting the modern board.”
FTI Consulting Webinar: The new UK Government – what does this mean for investing in and operating UK businesses
Please join FTI Consulting on Thursday July 11th at 2pm BST/ 9am ET for a webinar to discuss the impact of the new UK Government on business, M&A and regulatory markets.
The one-hour webinar taking place less than a week after the UK election results are declared, will break-down what the outcome means for business, outline the new key decision makers (and their approaches) and what considerations those looking to invest into UK businesses or already operating them should take into account.
Meet our Team: 30 seconds with Garrett Muzikowski
What is your focus area at FTI Consulting?
I sit on our M&A, Activism, and Governance team in New York, focusing on shareholder activism and corporate governance. Prior to FTI, I worked at Institutional Shareholder Services (ISS), where I advised the largest investors’ stewardship teams on how to vote their shares at annual and special meetings. This experience has been useful in helping Boards and management teams navigate proxy contests, contested M&A, Say on Pay proposals, shareholder proposals, and broader shareholder engagement.
What trends are you seeing in your marketplace?
Activists are evolving when they approach companies and how they apply pressure on companies. In general, I think a lot of people have the perception that Boards are vulnerable to activism leading up to proxy season (when their nomination window is open) and activists are after Board seats more than anything else. That’s not always the case – activists are publicly announcing stakes at any point in the calendar now – often leading up to an investor day or any other major catalyst in the equity story. Reaching out in the months leading up to an investor day allows activists to have an input on the company’s strategy and take credit (deserved or not) for any share price appreciation after the fact. The risk of activism is not gone simply because a Board’s nomination window has closed.
What do you do outside of work that helps you reset and stay sharp for the next professional challenge?
I try to find time to play soccer a couple times a week – it’s been a great way to keep in touch with friends and meet new ones in the city. I’m also going to Germany shortly where I hope to get to one or two European Championship quarterfinal games.
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 |
