Shareholder Insights & Intelligence
Activism and M&A Solutions
October 26, 2022DownloadsDownload Brochure
Driven by shareholder activists, potential regulatory changes and the rise in influence of retail investors, the evolving capital markets landscape has made it increasingly important for boards of directors, management teams and investor relations groups to be firmly in tune with changes in their shareholder bases and understanding the implications of those shifts.
A stock surveillance service provides real-time knowledge of the company’s shareholder base and is especially valuable for investor relations teams and management teams to monitor the daily equity flows within their stocks. It allows the company to be more prepared when it conducts non-deal roadshows and outreach to the investor community after an earnings call, while also managing investor access to executives.
Real-time shareholder identification is also a vital tool for companies that are facing a contested M&A or shareholder activist situation. The ability to identify an accurate shareholder base is critical to recognizing early action and estimating how many votable shares investors hold within their portfolios. Stock surveillance is the first defense against shareholder activism, as it provides data on investor purchases before they are in the public realm. Many shareholder activists build their positions with over-the-counter (OTC) derivatives, and it is important to understand the mechanics of these tools as it relates to an investor’s beneficial ownership.
How FTI Consulting can help
Our team’s approach to shareholder insights and stock surveillance helps clients navigate complex markets and uncover unique opportunities by combining the traditional elements of interpreting investor ownership and trading data with our full suite of resources and capabilities. Regardless of size or financial status, we tailor our offering to suit the immediate needs of the client, while focusing on the client’s long-term aspirations.
Combining a stock surveillance offering with the capabilities of a global consulting firm gives clients access to a network of professionals with varying expertise. Our team has over 20 years of experience working with publicly traded companies, their C-suites and boards of directors in order to create a stronger investor relations program, while strengthening their activism preparedness plans to capture the “first mover advantage” in the context of a potential proxy fight.
Stock Surveillance/Investor Targeting
- We use quantitative and qualitative data to craft real-time shareholder lists for investor relations professionals to help them understand the ebbs and flows in their stocks
- We calculate investor cost bases to provide context into shareholder movements, explaining whether investor transactions are driven by profit-taking, or if there is potentially a disconnect with the company’s vision
- We provide insights for clients’ board reporting
- With the recent rise in retail investing, we benchmark the increases in a company’s retail base by determining what percentage of buying/selling is allocated towards institutional investors versus retail investors
- We develop investor targeting insights to help management teams maximize their investor outreach efforts. With pre-IPO companies, we work to create a viable peer group, while focusing on both the direct peers and fundamental peers, to uncover potential investors that would be interested in the client’s story
Activism Vulnerability Assessment
- The quarterly activism vulnerability assessment, driven by data from FTI’s Activism Vulnerability Screener, provides board-level focus within governance, balance sheet, total shareholder return and operating performance
- The exercise help clients identify market and industry trends, as well as quarterly benchmarking, to solidify activism preparedness techniques
- While this does not replace an activism preparedness plan, it provides a baseline for clients to understand how they stack up against their peers and the broader market with regards to shareholder activism
- We assist clients in determining where their internal weaknesses lie, putting those deficiencies into the context of a shareholder activist’s mind and uncovering the tactics the activist would employ