Lower, Looser, Lighter: Why M&A-Focused Activist Campaigns Could Rise in 2025 — and How Companies Can Prepare

The shareholder activism landscape promises to stay busy in 2025, with underperforming companies likely facing heightened pressure, particularly in M&A-focused campaigns. Lower financing costs, looser capital requirements, and lighter merger scrutiny are expected to drive a resurgence in dealmaking, creating opportunities for activists to push for breakups, divestitures, or outright sales.

Companies must proactively prepare by developing clear strategies for long-term value creation, engaging with advisors, and fortifying their defenses to fend off potential activist campaigns. As outlined by Lawrence Elbaum and Patrick Gadson in FT Agenda, showing up to win requires relentless preparation and a compelling case for independence.