Companies who have not engaged with dissident shareholders may believe that once the campaign ends that it is business as usual. However, the post-activist environment can be as difficult for a company as the fight. Irrespective if the activist wins, management wins, or a compromise is reached. The company strategy, management, and shareholders experienced change.
Often, companies are left during these moments wondering what to do next. The uncertainty will often lead them to not engage with shareholders as they search for stability. However, the uncertainty is not limited to the company. Shareholders also face uncertainty as they contemplate how these changes will affect their returns. Shareholders will want to hear what changes have taken place. They will want to know and meet new leadership. They will want to understand what the short and long-term opportunities for their investment are. At this moment, communication is critical for the company to take action to communicate its continued viability and value amid change. The company has this post-activist opportunity to reshape its perceptions, increase its value and strengthen shareholder support through clear and meaningful communications.
EQ are specialists in helping you better understand and manage the ownership of your company through critical events across the corporate lifecycle. As trusted advisors, we provide strategic insight and operations expertise through our core business units in Private Company Services, Transfer Agent Services, Employee Plan Solutions, Proxy Services, and Bankruptcy. Globally we serve 6,700 clients (49% of the FTSE 100 UK and 35% of the S&P 500), with over 30 million shareholders, through 6,500 employees in 5 markets around the world.
About the Author
Louis Cordone is the Senior Vice President of Strategic Product at EQ U.S. In this role, Mr. Cordone helps companies leverage the unique insights from EQ’s data analytics to help them monitor market conditions and strategize shareholder outreach. Previously, Cordone spent six years with the company as SVP of its Ownership Intelligence business which consults for companies on securities ownership in regards to regulatory compliance and investor outreach. Before joining AST, he was the Head of the Advisory Services in the Americas division for Thomson Reuters. In that role, Mr. Cordone managed industry-based teams of analysts who provided shareholder identification services to Investor Relations Officers.