Quiet activism linked to higher shareholder returns in Europe

Alvarez & Marsal’s A&M Activist Alert Outlook found European companies privately engaged by activist investors outperformed peers. Over two years those firms delivered shareholder returns 7.3 percentage points higher than comparable companies and posted stronger returns on invested capital.

The firm analysed 1,589 listed European companies and identified 413 with recognised activist shareholders that had not faced public campaigns. In the two years after private engagement, targeted firms completed 21% fewer acquisitions, carried out 31% more disposals and reported disposal values that were 56% higher than peers.

A&M links the performance differences to private engagement rather than public campaigns, saying quieter engagement tended to push for portfolio simplification and higher-value disposals instead of increased deal-making.

Public activism rose in early 2026. Between January and May there were 78 campaigns across Europe, an 11% increase year on year. The UK accounted for 42% of campaigns and consumer companies were the most targeted sector. Governance demands were the most common request. M&A-related demands, including calls for disposals and spin-offs, increased from 8% of campaigns in 2025 to 20% in 2026.

“The image many people have of activism is still shaped by public campaigns and messy boardroom battles,” André Medeiros, Managing Director and Co-Head of Consumer and Retail, EMEA at A&M.

A&M expects activists to continue focusing on the UK and on the consumer, industrial and technology sectors. The firm also expects investors to scrutinise whether corporate investments in artificial intelligence deliver measurable improvements in productivity, returns on capital and shareholder value.

The report notes activist engagement takes multiple forms, and that private pressure has led to changes in corporate strategy and financial outcomes without public confrontation.