Corporate raiders are out. Corporate activists are in.
Hedge funds flush with cash are pressing companies for significant changes. Even executives seem more willing to pursue acquisitions they have long coveted. In this climate, companies need to be on alert for when — not if — they receive that phone call or email saying, “Game on!”
There are few situations where the stakes are as high as in a contest for control of a company. As corporate activism is projected to continue increasing, both sides in battles for corporate control will likely get more creative in their strategies and tactics.
What has become clear in recent years is that the winners of proxy battles or hostile, unsolicited bids are those who can gather the most accurate information and use it effectively to make their case.