A shareholder activist buys a stake in a public company and pushes for changes intended to increase shareholder value. Common demands include selling a business, cutting costs, changing capital allocation, replacing directors, improving governance, or pursuing a sale of the entire company.
Defense bankers advise companies before and during these campaigns. Their work can include assessing vulnerabilities, analyzing the shareholder base, evaluating the activist’s proposals, preparing financial materials for the board, and considering settlement or strategic alternatives. Lawyers and proxy solicitors handle important legal and voting matters, so be careful not to describe the bank as the sole adviser.