What is an activist investor and how do they influence companies?

An activist investor is someone who buys a significant stake in a company and then uses their influence to push for changes, such as selling the company, changing management, or altering business strategy. They typically target companies they believe are undervalued and can create value through these changes.

What does M&A mean and why does it matter for investors?

M&A stands for mergers and acquisitions - when companies buy, merge with, or take over other companies. For investors, M&A activity can create opportunities as target companies often see their share prices rise when acquisition rumours or bids emerge, and competitors may benefit from market consolidation.

What are life sciences companies and what do they do?

Life sciences companies provide tools, equipment, and services that support biotechnology, pharmaceutical, and medical research. They make everything from laboratory instruments and diagnostic tests to research chemicals and data analysis software that help develop new medicines and treatments.

How can sector consolidation benefit investors?

When industries consolidate through M&A activity, it can benefit investors in several ways: target companies often see share price increases, competitors may gain market share and pricing power, and the overall sector may attract more investor attention and higher valuations.

What does 'market cap' mean?

Market cap (market capitalisation) is the total value of a company's shares in the stock market. It's calculated by multiplying the current share price by the number of shares outstanding. It helps investors understand the size and relative value of different companies.

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Activist Sparks Life Science Shakeup

Activist investor Engine Capital is pushing for a sale of life-sciences company Avantor after taking a significant stake. This move could spark a wave of M&A across the life-sciences supply industry, creating opportunities for competitor firms and other potential acquisition targets.

Han Tan | Market Analyst

Updated 2 days ago | Published at août 11