The M&A Department

The M&A Department decides to divest a division. They need to understand the risk of shareholders rejecting it with their vote. Similarly, it would need to be considered for an acquisition.

To be able to assess any risk of failure, the M&A team needs to have a clear understanding of the views of the shareholders - at both the level of who manages the investment decisions and who controls the voting mandates. They may not be one and the same.

They would need to know who to engage with to consolidate support for the transaction.

(Please note, that bondholders may need to provide consent)

Implications to the IR Department

The IR Department needs to know how any transaction could alter the shareholder structure.

  • Who may vote with their feet and rotate out?

  • Who may become forced sellers for CG/ESG reasons?

  • Who may become forced sellers for sectoral changes / investment weightings?

  • Who may turn against management and build coalitions of support to change the strategy or outcome?

What impact might a transaction have on Investor Relations' ways of working?