Global professional services firm Alvarez & Marsal (A&M) released its inaugural U.S. Activist Alert (AAA) Report, highlighting the forces shaping shareholder activism in 2026, as M&A demands have surged roughly 20% annually over the past three years and quarterly deal value reached nearly $1 trillion in Q4/25 — more than double Q3/24 levels.
The report draws on A&M’s Shareholder Activism Vulnerability Model, which evaluates Russell 3000 companies with market capitalizations of at least $250 million. Combining data analytics with insights from A&M’s industry and functional experts, the analysis helps boards and management teams understand how investors are assessing value creation — and how companies can stay ahead of peers and prepare for potential activism.
“Our proprietary analytics reiterates that while these themes and dynamics aren’t entirely new, they are continuing to evolve,” Jay Frankl, managing director, who founded and leads A&M’s Shareholder Activism and Contested M&A practice and the co-author of the US AAA report, said. “We see more corporate leaders and boards proactively evaluating their corporate strategies and operating performance in the context of these three themes to stay ahead of potential activists.”
The report examines three market trends and their impact on companies, investors and activists:
- Enhanced focus on margin improvement and cost discipline, particularly amid increased transaction activity
- Increased M&A activity and shareholder activism theses, driven in part by rising foreign investment in the U.S.
- Portfolio optimization, with greater emphasis on rigorously assessing the synergies among assets and businesses.
The report also highlights the convergence of several macro factors in 2026 — including an increase in infrastructure spending, rising foreign direct investment and potential interest rate cuts — which create a heightened activism environment.
“Today’s volatility is pushing investors beyond the realm of traditional activism and is increasing scrutiny of companies’ asset composition, capital intensity, growth profiles, and valuation logic across their portfolios,” Annie Peabody, managing director with A&M’s corporate performance improvement and co-author of the US AAA Report, said. “Companies that have the discipline to conduct rigorous self-examination and optimization are best positioned to retain control of their equity stories and corporate narratives, and maximize value for shareholders.”
