Activists Expect To Disrupt M&A Activity This Year

Activist funds normally get involved in mergers and acquisition (M&A) activity by disrupting the target of a deal, buying a stake and then persuading other voters to hold out for better terms, but according to a recent survey from FTI Consulting they intend to get involved in the acquiring side this year as well. “An acquirer will often use more aggressive balance sheet structures to execute M&A,” said FTI Consulting analyst Steven Balet. “An M&A activist may well look at this structure and the risk profile of the transaction and decide that he or she likes the board’s more aggressive…