Shareholder Relations / Hostile Defense / Unsolicited Acquisitions

The best way for a public company to avoid hostile activity is to prepare for it, and DelMorgan provides a thoughtful, structured approach to do so.

If a company finds itself in the middle of a proxy fight or takeover attempt, it takes a special kind of advisor to help navigate towards a successful outcome.

DelMorgan, with its intellectual firepower and relentless dedication, can be that advisor – because each decision can mean so much, and often in such situations there are no second chances.

Being a public company in today’s world entails a lot of pressures, and the pressure to be seen to be focused on shareholder value can be one of the most intense. Opportunistic investors and shareholder activists can have different agendas, and hostile defense can be a priority. Conversely, corporate managements can sometimes become entrenched and lose sight of their shareholders’ interests, in which case outside pressures may be beneficial.

At DelMorgan, we believe the best defense is a good offense. A company is much less likely to be attacked for failing to focus on shareholder value if it does indeed focus on shareholder value. We advise preparation and initiative for companies well before they show up on any the screen of any corporate raider or shareholder activist. Through a “shareholder relations” assignment, DelMorgan works with the public company to assess its long-term business strategy, evaluate strategic options, review (and if appropriate augment) takeover defenses, improve shareholder communications, analyze the shareholder base, and prepare a report for the client’s board of directors or management team on the company’s inherent valuation, trading performance and strategies for managing future issues.

When a company is targeted by an unsolicited acquisition offer, a proxy fight or any form of shareholder insurgency, DelMorgan is among a very small group of institutions worldwide with the experience, temperament, know-how and dedication to mount an effective hostile defense. Success often depends upon having an advisor who has been through similar situations, can respond instantly and around-the-clock, and can handle the complex financial and legal issues involved. For our clients who find themselves in these situations, DelMorgan can be that advisor.

On the other hand, we believe that companies ultimately exist to benefit their shareholders, and not the reverse. Our team’s track record in hostile defense is matched by an equivalent success rate in unsolicited acquisitions. DelMorgan’s clients – by taking advantage of the lessons we have learned from our experience combined with our sensitivity to the public markets and our creative inspiration – can avoid the frustration of having a seemingly compelling message ignored by targets, shareholders and the public.