Done Deal – Insights from our M&A and Activism team – September 2024
Insights from our M&A and Activism team
Welcome to the latest installment of Done Deal! In this edition, Renee Law and Anya Bailey share insights into recent market trends and deal activity in Australia and Asia. Following this, we highlight an article from Management Today with insights from Lucy Delaney on how the hybrid working environment affects M&A. We then go on to cover the ways ESG, DEI and Corporate Citizenship are scrutinized on the boardroom agenda, in our latest thought leadership piece. Lastly, Mike Gaudreau from our New York team offers brief reflections in our colleague spotlight.
Insights on Market Trends and Deal Activity in Australia and Asia
The Hidden Cost of Ignoring Hybrid Work in Mergers and Acquisitions via Management Today
Hybrid working: The great enabler and equaliser of our times. It has transformed the office and how we collaborate, increased cost efficiencies, attracted global talent and, with its offer of flexibility, has quickly become the new currency of business. But when it comes to the merger and acquisition integration process, organizational approaches to blended working can be a major obstacle when bringing two workforces together.
Navigating the New Barbarians at the Gate: How ESG, DEI, and Corporate Citizenship are Scrutinized
The anti-woke movement has officially taken the social activism movement to new heights in 2024: through a bombastic and verbose talking head on X (the platform formerly known as Twitter) who has gained a following among right wing individuals. Robby Starbuck has played an outsized role in making changes to corporate America with a speed that previous social activists have yet to achieve. Instead of financial returns, these activists are interested in driving company policy, influencing societal and political change, and gaining media attention for their causes. We’ve dubbed these social activists the “New Barbarians at the Gate.”
What We’re Up To
Meet our Team: 30 seconds with Mike Gaudreau
What is your focus area at FTI Consulting?
My background is in finance, capital markets, and investor relations advisory, so I predominantly focus on M&A and activism projects where there is a significant referendum from shareholders, either a vote, a contested transaction, or live activist investor engagement. Public contested situations like hostile bids, unsolicited bid defense, or proxy contests are usually the most fun and challenging for me.
What trends are you seeing in your marketplace?
I think the market is ripe for more unsolicited bid activity. Every year since 2022 has been “the year M&A really comes back,” and it still has not gotten back to peak levels of deal activity. With the US election coming up and populism becoming a key issue for both sides, I’m not sure that a Republican administration would be as friendly for dealmaking as people may have thought ~6 months ago. Given all of that, there are still large companies who have been waiting out antitrust and interest rate risks that are looking at deals and have lots of dry powder on the sidelines. At the same time, there are lots of smaller companies who have seen valuations drop precipitously from 2020/2021 highs and still believe they can get back to their peak valuations even though go forward prospects have drastically changed. I think that valuation gap (along with some possible interest rate cuts on the horizon) will lead to a lot more unsolicited activity, even if it’s not necessarily hostile, and some more pushes for companies to sell themselves from activist investors.
What do you do outside of work that helps you reset and stay sharp for the next professional challenge?
I love being active and outside, so anything like that really. I like to go to the gym, go for walks, go to the beach – it helps me clear my mind. I’m a big football fan as well so really hoping my NY Giants can shock some people this season.
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 |
