Knowing what activists look for can help CEOs respond constructively if an activist approaches. Or it can spark the performance improvements and portfolio moves that will take the company off the activist’s radar.
Andrew Lindsay, Managing Director, KPMG LLP
Lessons from companies that said “yes” to activists
COVID-19 has made engagement with activists even more of an imperative for CEOs. When activists reenter the market, they will be looking for opportunities created by the sudden economic downturn. In addition to looking for individual companies that fit their target criteria—undervalued, slow growing businesses, with high debt and low credit quality—activists will likely look at opportunities to consolidate industry sectors that have been pummeled by COVID-19.
KPMG can help analyze companies from an operational improvement perspective and work with company boards and management to develop the appropriate response to activist approaches.
