10 Tips for Dealing with SmallCap Activist Shareholders

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10 Tips for Dealing with SmallCap Activist Shareholders

In 2016, the sub-$2 billion market cap arena accounted for 78% of all activist targets. A post on the Sharon Merrill Associates blog shares 10 Tips for Dealing with Shareholder Activism.

Maureen Wolff, President and Partner, Sharon Merrill Associates writes “For many companies, a looming activist shareholder is no longer the exception – it’s the rule.”

Wolff shares 10 tips for dealing with smallcap activists.

1. Understand the triggers that could make your company a target

2. Know your shareholder base

3. Respond promptly to all investor inquiries

4. Know who among your investors is unhappy and develop a dialogue

5. Prepare yourself before speaking or meeting with an activist investor

6. Be proactive when it comes to good corporate governance

7. Be careful in making governance changes

8. Know the proxy voting guidelines of your investor base

9. Seek common ground to avoid a public proxy fight

10. Performance is priority number one once a campaign begins

Learn more about the 10 tips HERE.




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