SHAREHOLDER ACTIVISM IN M&A 

Public attention is increasingly directed towards concerns over natural resource scarcity, the environmental and social impacts of dependency on carbon-based and other non-renewable resources, and the effects of business practices and decisions on the health of the environment and society. In considering investment alternatives, investors are increasingly weighing the sustainability and corporate social responsibility policies of corporations and the impact of corporate decisions on the environment and society.

As is often observed in connection with emerging industries and with companies in the start-up or capitalisation phase of operations, there are ample opportunities to be victimised by accounting and other frauds, especially among uninformed or unsophisticated investors. Simply put, when individuals or companies become excited about new, seemingly-fleeting ground floor investment opportunities – or are motivated to do good and allow their hearts to overrule their heads – they may not be as likely to perform comprehensive due diligence, greatly increasing their investment risk. In short, the peril of losses due to fraud, not simply due to the speculative nature of these investments and the normal and accepted vagaries of business and the economy, may be greatly exacerbated.

Oct-Dec 2014 Issue

AlixPartners

Okapi Partners LLC

Simpson Thacher & Bartlett LLP

Skadden, Arps, Slate, Meagher & Flom LLP