Campaigns jump despite M&A lag
The uncertainty factor, coupled with an M&A drop, failed to pause activist investor campaigns.
Barclays first quarter data shows 70 global campaigns year-to-date, a 17% jump, with much of the increase coming from a 43% spike in the U.S. and a 45% bump in Japan.
Dissidents placed the “sell yourself” sign in the shed for now and have doubled down on boardroom shake-ups and operational changes.
Industrial companies remain the top target, as activists push simplification. That sector, along with healthcare and tech, comprised 66% of campaigns this year, Barclays notes. Boardroom change was the top objective by far, dwarfing M&A.
A wave of dissident nominees landed. Activists captured 51 board seats and struck 26 settlements during the quarter, according to Barclays. Thirteen proxy fights are either done or in motion, one-third more than last year at this time.
Elliott and Starboard remain old guard constants, but a new generation of activists are gaining prominence. Campaigns launched by first-timers represented 16% of global campaign activity, exceeding the historical average since 2021.
Attention will remain on capital allocation, operational tweaks, and leadership changes. Any future signs of a market stabilizing, and M&A returning, will embolden activists, who increasingly strike at any opportune time. There is no campaign season anymore.