Buoyed by an improved economic climate and unprecedented success
in 2013, shareholder activists are expected to significantly
influence the 2014 M&A landscape. As shareholder activism
becomes more widespread, activists are becoming increasingly
ambitious and creative in their approach.
Last year saw a rise in the power and influence of activist
hedge funds. In 2013, activist hedge funds managed over $93
billion, a 42% increase from 2012. With more capital, activist
hedge funds have been able to target larger and more sophisticated
companies.
Shareholder activists are also looking to expand their
geographic reach. Despite confidence in the North American market,
in a survey undertaken by FTI Consulting, 40% of
activists admitted to shifting their focus to Europe and elsewhere.
Specifically, activists are getting more involved in the UK, where
corporate governance and legal frameworks are the most
activist-friendly.
