No Result
View All Result
SUBSCRIBE | NO FEES, NO PAYWALLS
MANAGE MY SUBSCRIPTION
NEWSLETTER
Corporate Compliance Insights
  • Home
  • About
    • About CCI
    • Writing for CCI
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Career Connection
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Whitepapers & Reports
    • eBooks
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
  • Subscribe
  • Home
  • About
    • About CCI
    • Writing for CCI
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Career Connection
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Whitepapers & Reports
    • eBooks
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
  • Subscribe
No Result
View All Result
Corporate Compliance Insights
Home Featured

Activists’ Expanding Influence in M&As

by Craig Clay
August 8, 2017
in Featured, Governance
two hands connecting matching puzzle pieces

Corporate Governance and M&A in the Age of the Activist

Activist campaigns and predictions are dominating the headlines this year as shareholders are calling for changes at companies across the globe. With this constant flow of shareholder activity, governance has climbed up the priority list for corporate boards — particularly when it comes to preparing and executing M&A deals. Boards are also anxiously awaiting a verdict on the Securities and Exchange Commission’s (SEC) controversial universal proxy proposal, which could see more rights granted to shareholders, making it easier for activist investors to gain a place on corporate boards.

Healthy Activist Appetite

The activist appetite for M&A is far from waning. According to a MergerMarket poll, 72 percent of executives believe shareholder-activist-driven M&A will continue to increase in the next year, with 32 percent saying the increase will be “significant.” In the U.S., 456 activist demands were made on businesses in 2016, compared to 418 in 2015. And the activity is not just up in the U.S.: In the same period, the number of companies targeted by activists in Europe increased from 72 to 97 and in Asia from 52 to 77.

This frequency is predicted to continue increasing due to the pressure 1) to merge with a competitor and 2) to spend cash on acquisitions. Shareholders and other institutional investors are increasingly pressuring organizations to carry out M&A of high- and low-profile competitors, recognizing this as the next big step to significantly increase returns. Shareholder activists are no longer playing small, because they want the most from their investments.

Shareholder Challenges in International M&A Deals

While it’s clear that cross-border M&A activity is growing, what’s not so apparent is what will happen to shareholder challenges in international M&A deals. A point of contention is whether different geographical jurisdictions and legislation are increasing or decreasing challenges.

On one hand, increased cross-border deal activity could come with more challenges from shareholders because a lack of uniformity across various jurisdictions makes completing deals more difficult. Therefore, companies need to explain to shareholders the rationale for deals and be clear about their expansion goals.

On the other hand, some international markets are making efforts to standardize legislation and businesses are devising new strategies to take shareholders’ feedback but reduce their direct influence, which could decrease challenges.

Impact of the New U.S. Administration

What is clear is that companies are getting support from the new U.S. administration. The new SEC chair, Walter J. Clayton, comes from a background of closing deals, having been on the front lines of major M&A and capital markets transactions. His presence leads many to believe that shareholders’ rights will be restricted — a major boost for corporate board interests who will have better control over decisions in the company.

However, the SEC’s vote on the universal proxy proposal, which would give shareholders the ability to vote by proxy rather than having to vote in person, is harder to predict. The proposal may make it easier for dissident candidates to be elected to corporate boards and would likely change corporate governance practices and activist negotiating strategies.

The Age of the Activist

The shareholder activism world will continue to increase in size and reach. Activists challenge and trigger M&A transactions with increasing prevalence and success because of their access to capital and serious equity in large companies. While the debate continues as to whether shareholder activism is a blessing or curse, it’s clear that this is the age of the activist.  Smart companies are tracking these changes and developing strategies on how to address them.


Tags: Board of DirectorsMergers and Acquisitions
Previous Post

Snake Bait and Unintended Consequences

Next Post

Fallout Continues for Wells Fargo

Craig Clay

Craig Clay

Craig Clay is the President of Donnelley Financial Solutions. With more than 20 years at Donnelley Financial Solutions, Craig has built, managed, integrated and transformed highly successful technology, services and outsourcing businesses, specializing in mission-critical document and information management. In addition to being responsible for customer satisfaction and retention, as well as owning the overall vision, strategy and goals for the business, Craig focuses on aligning global market strategies with the company’s continued commitment to aggressive technological innovation across on product and service offerings. Craig serves as a Trustee for Big Brothers Big Sisters of New York City and is a board-member for Peloton Document Solutions LLC. He holds a BBA in Finance and International Business from Baylor University and an MBA from Southern Methodist University. Prior to joining RR Donnelley, Craig was with American Eurocopter, a subsidiary of Aerospatiale.

Related Posts

deloach zoo of risk

Beware of Danger: In the Zoo of Risk, Organizations Must Prepare for Anything — Especially Disruptors

by Jim DeLoach
June 8, 2022

In the zoo of risk, there are many kinds of animals to see in the normal course of managing a...

M&A concept

Are You a Prepared Acquirer?

by Mark Sirower and Jeff Weirens
March 15, 2022

Boards of directors and company leadership tend to go about acquisitions in one of two ways. Some are presented with...

numerous doors stand in a field

How to Identify the ESG Issues That Deserve the Board’s Attention in 2022

by Helle Bank Jorgensen
March 2, 2022

You can't improve all the ESG compliance all the time. So how should boards triage and decide which issues deserve...

Lotus Tower in Colombo Sri Lanka

This Initiative Is Looking to Foster Board Gender Inclusivity in Sri Lanka Corporations

by Aroshi Nananyakkara and Thamali Rodrigo
February 24, 2022

Around the world – and especially in APAC – robust correlations have emerged between business performance and board gender diversity....

Next Post
wells fargo building

Fallout Continues for Wells Fargo

Compliance Job Interview Q&A

Jump to a Topic

AML Anti-Bribery Anti-Corruption Artificial Intelligence (AI) Automation Banking Board of Directors Board Risk Oversight Business Continuity Planning California Consumer Privacy Act (CCPA) Communications Management Corporate Culture COVID-19 Cryptocurrency Culture of Ethics Cybercrime Cyber Risk Data Analytics Data Breach Data Governance Decision-Making DOJ Download Due Diligence Enterprise Risk Management (ERM) ESG FCPA Enforcement Actions Financial Crime GDPR HIPAA Know Your Customer (KYC) Machine Learning Monitoring Ransomware RegTech Reputation Risk Risk Assessment SEC Social Media Risk Supply Chain Technology Third Party Risk Management Tone at the Top Training Whistleblowing
No Result
View All Result

Privacy Policy

Founded in 2010, CCI is the web’s premier global independent news source for compliance, ethics, risk and information security. 

Got a news tip? Get in touch. Want a weekly round-up in your inbox? Sign up for free. No subscription fees, no paywalls. 

Follow Us

Browse Topics:

  • CCI Press
  • Compliance
  • Compliance Podcasts
  • Cybersecurity
  • Data Privacy
  • eBooks Published by CCI
  • Ethics
  • FCPA
  • Featured
  • Financial Services
  • Fraud
  • Governance
  • GRC Vendor News
  • HR Compliance
  • Internal Audit
  • Leadership and Career
  • On Demand Webinars
  • Opinion
  • Resource Library
  • Risk
  • Uncategorized
  • Videos
  • Webinars
  • Well-Being
  • Whitepapers

© 2022 Corporate Compliance Insights

No Result
View All Result
  • Home
  • About
    • About CCI
    • Writing for CCI
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Career Connection
  • Events
    • Calendar
    • Submit an Event
  • Library
    • Whitepapers & Reports
    • eBooks
    • CCI Press & Compliance Bookshelf
  • Podcasts
  • Videos
  • Subscribe

© 2022 Corporate Compliance Insights

Welcome to CCI. This site uses cookies. Please click OK to accept. Privacy Policy
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT