Dynamics Group AG
19.02.2025 - 08:00:13Switzerland in focus of European activist investors
| Dynamics Group AG / Key word(s): Study 19.02.2025 / 08:00 CET/CEST Media release Switzerland among the top target markets for shareholder activism in Europe Activist campaigns in Switzerland on the rise, fuelled by corporate law reforms and the success of previous campaigns Switzerland predicted to see greatest increase in shareholder activism in 2025 141 European companies at heightened risk of activism over the next 18 months – 17 in Switzerland Zurich, 19 February 2025 – Global professional services firm Alvarez & Marsal (“A&M”) has released its fourteenth edition of the "A&M Activist Alert" (AAA), which presents a comprehensive review of shareholder activism in Europe during 2024 and provides projections for 2025. Shareholder activism has seen a mixed picture in 2024 across major European markets. The UK remained the most targeted European market, with 49 at-risk companies identified and 42% of all activist campaigns launched in Europe in 2024 targeting UK companies. Switzerland ranked third behind Germany. France saw a notable decline in public activist campaigns in 2024, being overtaken by Switzerland and Benelux, both of which saw a significant increase in the number of campaigns launched. For the fifth year in a row, industrials remained the most targeted sector by activists, accounting for 21% of all campaigns in 2024. The technology sector also saw significant growth, accounting for 13% of campaigns, with a particular focus on German companies. 2024 was also the year of growing interest from US-based activists in European targets. While changes to corporate governance remain the top investor demand, its importance is declining, as is the emphasis on environmental and social demands. Demands for operational and strategic changes to improve performance continued to rise, with 19% of campaigns focusing on this. Activist funds, particularly the larger ones, have also steadily reduced their use of public campaigns, relying more on private discussions with boards to achieve the same activist goals. Malcolm McKenzie, Managing Director and Chair of European Corporate Transformation Services said: “US activists are continuing to make their presence felt in Europe, and this growing appetite shows no sign of subsiding. Transatlantic campaigns are likely to become an increasingly regular feature of 2025 and into 2026, with the UK, Switzerland and Benelux already established hunting grounds while Germany is also expected to become a growing target.” Activist campaigns in Switzerland continue to grow Switzerland continues to attract increasing activist attention, with recent cases including IWG, Baloise and Logitech joining earlier examples of Nestlé, Richemont and Glencore. Switzerland saw a marked increase in activist campaigns in 2024, accounting for 13% of all European activism, up from 11% in 2023. The Swiss market's combination of low valuations and evolving governance landscape positions it as a prime area for activist interest. A&M's latest AAA analysis underscores the importance of preparedness and strategic foresight for Swiss companies seeking to mitigate activist pressure. The focus was particularly on companies in the industrial and consumer sectors. Larger funds, managing assets exceeding USD 10 billion, have increasingly opted for private dialogues, reducing their public campaigns to only 10.5% of their total interventions. Funds with assets under USD 2 billion have launched 74% of all public campaigns in Switzerland, reflecting their growing influence. Environmental and social (E&S) demands saw a decrease, declined from 26 campaigns in early 2023 to 19 in the same period in 2024. Alessandro Farsaci, Manging Director and Head of the Swiss Restructuring and Turnaround Practice said: “Swiss companies brace for increased shareholder scrutiny amid evolving global activism trends. Proactive engagement and open-mindedness can defuse potential conflicts before they escalate into public confrontations. With company valuations remaining under pressure, the opportunities for activists to push for value-enhancing measures are likely to increase.” Outlook for 2025 Geopolitical turmoil, valuations under pressure and growing M&A momentum are expected to set the stage for increased investor activism in Europe through 2025 and into 2026. Germany, Switzerland and Benelux are likely to see a greater focus on activism, with US-based funds behind a greater proportion of campaigns. In Europe, the industrials sector has seen the largest increase in activist campaigns of any sector, and A&M expects this focus to continue in 2025. In total, 141 companies across Europe are projected to be at risk of activism in 2025. Similar to Germany, Switzerland is overweight in the industrials sector and underweight in consumer staples, which also supports the prediction that shareholder activism will continue to increase in Switzerland. With 17 likely targets, Switzerland is expected to see the largest increase in shareholder activism. Public-to-private transactions are expected to increase, leading to greater activist involvement. Notes to Editors About the AAA A&M’s Activist Alert model includes detailed analysis of listed corporates with a market capitalisation of €200 million or more headquartered in the UK, Germany, France, Scandinavia, Switzerland, Benelux, Italy and Spain. In total, 1,530 European companies were analysed, and their performance compared to 6,045 global peers. We analyse each company using 48 quantitative and qualitative variables derived from publicly available data and assess a company’s relative performance against their global sub-sector peers. About Alvarez & Marsal Founded in 1983, Alvarez & Marsal is a leading global professional services firm. Renowned for its leadership, action and results, Alvarez & Marsal provides advisory, business performance improvement and turnaround management services, delivering practical solutions to address clients' unique challenges. With a world-wide network of experienced operators, world-class consultants, former regulators and industry authorities, Alvarez & Marsal helps corporates, boards, private equity firms, law firms and government agencies drive transformation, mitigate risk and unlock value at every stage of growth. To learn more, visit: AlvarezandMarsal.com CONTACT: Nicolas Weidmann Dynamics Group +41 (0)79 372 2981 nwe@dynamicsgroup.ch Alessandro Farsaci Managing Director, Restructuring Alvarez & Marsal afarsaci@alvarezandmarsal.com Additional features: File: AAA 2025 Report Swiss Press Release E_Final File: A&M Activist Alert (AAA) 2025 Report End of Media Release |
