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Six Steps Necessary for a Successful Activist Investment Campaign (DSBATT)

During the 1960’s the US Naval War College defined the 6 steps necessary for a
successful insurgent campaign, in 2003 Rich Tullo adopted these six steps for investment
insurgents.

Define Critical Issue

       Revenue
       Earnings
       Corporate Governance
       Capital Structure

Shareholder Support

       Make the case to shareholders
       Build Coalition of 20% to 40% shares outstanding
       Hold shareholder meeting to develop agenda
       Develop alternative vision

Build up

       Hire attorney
       Recruit directors
       Recruit management team

Attrition

       Solicit votes
       Negotiate Seats
       Present alternative vision

Transition

       Co-opt board
       Lobby for shareholder agenda
       Pursue strategic alternative
       Hire independent investment bank
       Hire independent compensation consultant

Takeover

       Pursue Second Proxy
       Remove directors
       Remove CEO
       Execute strategic alternative

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Six Steps Necessary For A Successful Activist Investment Campaign

  • 1. Six Steps Necessary for a Successful Activist Investment Campaign (DSBATT) During the 1960’s the US Naval War College defined the 6 steps necessary for a successful insurgent campaign, in 2003 Rich Tullo adopted these six steps for investment insurgents. Define Critical Issue Revenue Earnings Corporate Governance Capital Structure Shareholder Support Make the case to shareholders Build Coalition of 20% to 40% shares outstanding Hold shareholder meeting to develop agenda Develop alternative vision Build up Hire attorney Recruit directors Recruit management team Attrition Solicit votes Negotiate Seats Present alternative vision Transition Co-opt board Lobby for shareholder agenda Pursue strategic alternative Hire independent investment bank Hire independent compensation consultant Takeover Pursue Second Proxy Remove directors Remove CEO Execute strategic alternative