Activist on Your Doorstep
What to Do When an Activist is on Your Doorstep
While even the best preparation cannot prevent activist aggression, it can put a company in the best position to convey its message to the institutional community and to reduce the credibility of the activist.
Focus on Clear Messaging
- Use messaging that directly addresses activist assertions. Avoiding them gives investors the impression the activists are correct. Drive messaging that resonates with investors first and the media second.
- Behind the Headline – Insist on having all the data you need at hand to execute your responses and prevent leaks.
Create Strong Shareholder Engagement
- Engagement with shareholders must include the proxy-voting decision makers, who may not be the portfolio manager or analyst.
- Shareholder research – understand voting guidelines, preferred engagement processes and identify voting decision makers.
- Behind the headline – monitor all key influencers within your shareholder base plus sell-side analysts and bloggers.
- Have a plan for ISS and one for gaining institutional support.
Use Media to Your Advantage
- Leverage the traditional media and use digital assets (website and social media) to get the message out quickly – traditional media may tire of a story, but social media can be used to reinvigorate the messaging.
- Create digital content and website to facilitate various stakeholder communications and drive stakeholders to one source for information to control the message.
Meet Our Experts
Senior Managing Director
Senior Managing Director, Leader of Private Capital Advisory Services