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EY teams help companies design their shareholder activism defense programs that proactively address concerns and preempt challenges. If an activist surfaces, we guide our clients to achieve the best outcome for their company, the board and its shareholders.
What EY's shareholder activism defense team can do for you
Is your company vulnerable to an activist attack and are you ready to respond? Shareholder activism has become part of the new normal and can be highly disruptive to an organization.
Designing and advising on proactive activism defense programs
Ernst & Young LLP (EY US) provides strategic and tactical advice to public companies before and during activist campaigns to help preempt shareholder challenges and secure their objectives. We collaborate closely with other activism defense advisors including legal advisors, proxy solicitors and communications firms.
Proactive preparedness by companies
Activist response
Overview
Proactively addressing vulnerabilities and preparing for activist investors
Responding to and defending the company against activists during a live campaign
Company objectives
Identify risks and anticipate potential challenges
Mitigate vulnerabilities and execute initiatives to unlock value
Understand objectives and perspectives of major shareholders
Assemble response team and develop emergency
Establish framework for communications and interactions between the company, activist and media
Engage with shareholders and key constituencies to keep them onside
Evaluate the threat and decide on the best course of action
Navigate the situation while minimizing disruption to the company’s long-term strategy and day-to-day operations
Key considerations
What structural protections does your company have and how effective are they?
How does your company engage with its stakeholders?
Which areas of your company are an activist likely to attack?
What are the responsibilities of various constituencies?
What actions should your company take when approached by an activist?
How does your company maintain control of the situation and narrative?
How does your company constructively respond to an activist demand?
How can your company garner the necessary support to meet its objectives?
EY illustrative work streams
Education sessions and market updates
Shareholder base analysis
Corporate governance review
Board composition assessment
Vulnerability assessment
Benchmarking analysis
Strategic alternatives analysis
Attack simulation/scenario analysis
Shareholder engagement review
Outside-in valuation/financial analysis
Review of activist profile, history, strategy, reputation, track record, style and tactics
Evaluation of activist claims, strength of thesis and likely outcomes
Day-to-day coordination between activist, company/board and other advisors
Preparation of responses to activist demands with supporting analyses
Assist management with the drafting of investor communications
Why work with EY's shareholder activism defense team?
Independence
Globally recognized brand known for objectivity, trust and credibility
Relationships focused on long-term value, not solely mergers, acquisitions or capital markets transactions
High-quality advice unencumbered by conflicts or other distractions
Scale, depth and breadth
Network of 290,000+ professionals aligned to specific industries and dedicated practice areas offer rich sector experience combined with deep functional knowledge and skills — from strategy to execution
Multidisciplinary approach that applies strategic, financial, operational and governance lenses to deliver holistic solutions that go beyond the standard activism defense playbook
Proven shareholder activist defense experience
In-depth understanding of activists, their tactics and market dynamics — brings better analysis, faster insights and stronger execution to your preparedness and defense strategy
Distinguished leadership team with more than two decades of experience advising on some of the most high-profile campaigns in history
How do we go beyond traditional financial advisors?
EY US is an end-to-end provider that can quickly and seamlessly address vulnerabilities — from identification through implementation — to better defend clients against activist threats. Learn more about how EY can help companies enhance value, mitigate vulnerabilities and prepare for activist investors.
A change in universal proxy card September 2022 will provide a more even playing field for those voting by proxy and give investors more options to express their view on who should be on the board.