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. They may assess vulnerabilities, analyze the shareholder base, evaluate the activist’s proposals, prepare financial materials for the board, and consider settlement or strategic alternatives. Lawyers and proxy solicitors handle important legal and voting matters, so do not describe the bank as the sole adviser.