More and more publicly traded companies are approached by activists. The company’s management often has difficulty responding. To respond more effectively, and increase the chances of boosting long-term value, management should develop a more effective plan before being approached by an activist. At PwC we assist our clients with planning and preparing to counteract and maintain shareholder value.
The activist manager should follow a three-step approach. First, evaluate, systematically and dispassionately, where the opportunities for value creation exist. Second, evaluate and execute options to deliver on those opportunities. And finally, communicate the growth plan to value-oriented investors.
Management needs to understand which key variables investors are using to assess the company, and adjust the company’s messages, metrics, and methods to tell the value story most effectively. Clients rely on PwC to help them prepare and communicate more clearly and effectively.
To read more see our publications on Shareholder Activism below.
Deals Leader, PwC US
Valuation Leader, PwC US