Investor activism is a global story which shows no signs of slowing, as this article highlights.  One aspect that remains core to the principle of activism investing is valuation - more specifically the disparity between the observed current valuation and the expected market value achievable through enhancements suggested by the activist.

Boards should be prepared for this event - if not, they are susceptible to an intervention which can be costly and time consuming.  Ultimately, the action may only deliver short term gains, remembering the other consistent theme of activism - that the value generation is important to the activist, only while they remain invested.

To learn how A&M is advising corporate boards on what they can do to mitigate activism risks, visit our website here.