Managing Director, London
London (March 12th, 2019) – With the continued prominence and success of activist investors across Europe, a survey by consulting firm AlixPartners of over 500 public company board-level execs finds that while the majority of companies are concerned, only one third feel that they have the expertise to deal with an activist approach. Speaking on condition of anonymity, AlixPartners has gained an honest insight into these worries, which fall under three main themes.
Solution: “The 5Cs”
Commenting on the survey, Eric Benedict, Managing Director and UK Local Market Leader for AlixPartners, said:
“While public companies recognise that activism is on the rise, there is a lack of clarity as to the pre-emptive steps they should be taking to protect themselves. The fact that so many are uncertain as to how to prepare means the door is increasingly ajar for activist entry.
"It is important to note that activist approaches are very rarely founded upon ideas which are not visible to, nor under the direct control of, management teams. These approaches consistently focus on five key themes; core vs non-core, cost savings, capital structure, cashflow, and corporate governance. A rigorous, and constant, focus on these areas is the key to success in warding off the activist threat.
"To meet this growing challenge, executives must adopt, and constantly exhibit, the same “outside-in” approach as those stalking them by marrying critical thinking with decisive action. The ability of boards to adopt an activist mindset of their own is the key to success."
About the Survey
AlixPartners, in conjunction with leading independent research firm Explain The Market, collated responses from 500 public company board level executives across the UK, France, Germany, and Italy. Respondents were asked a series of quantitative and qualitative questions as regards their views on the phenomenon of activist investing. The survey was administered online and all responses were anonymized bar location and industry sector.
Please contact Robin Knight for more detailed survey results and verbatim quotes from respondents.
AlixPartners is a results-driven global consulting firm that specializes in helping businesses successfully address their most complex and critical challenges. Our clients include companies, corporate boards, law firms, investment banks, private equity firms, and others. Founded in 1981, AlixPartners is headquartered in New York, and has offices in more than 20 cities around the world. For more information, visit www.alixpartners.com.
Global Media Relations Director, London