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Accordingly, companies should regularly review and adjust their plans to avoid an activist attack and to successfully deal with an activist attack if one should occur.
Companies should regularly review and adjust their plans designed to avoid an activist attack and to successfully deal with an activist attack if one should occur.
Prevention of, or response to, an activist attack is an art, not a science.
This research turns the activist attack on free trade on its head.
The article highlights the average Q ratio for companies subject to activist attack in the following five years.
Companies and boards need to check their vulnerabilities, prepare for the threat of an activist attack, and engage with shareholders on a regular basis.
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What If an Activist Attacks?
The additional capital and new partnerships between activists and institutional investors have encouraged increasingly aggressive activist attacks.
Companies facing activist attacks, or considering a policy of direct engagement generally, should evaluate each situation on its own terms.
Some activist attacks are designed to facilitate a takeover or to force a sale of the target, such as the failed Icahn attack on Clorox.
Now, in 2018, oil companies whose stock value fails to keep pace with rising oil prices are seen as weak performers, opening themselves up to activist attacks.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com