Getting On The Front Foot: Responding To A Takeover Approach

In brief

Receipt of an unsolicited non-binding offer – or even more so an unsolicited takeover bid – can make a target company and its board feel immediately on the back foot, even for directors and executives who have been involved in a change of control transaction in the past.

In this article, we provide practical guidance to help target boards get on the front foot early, take control of the process, and position themselves to be able to assess a proposal with shareholders' best interests front of mind.

Early warning signs: hints that a proposal is coming

A very near-term warning sign is a financial adviser or other external contact getting in touch to seek contact details for the Chair, or test their weekend availability. In most cases, the first direct contact to foreshadow an approach will be to the Chair over a weekend or in an evening outside of market hours.