BLOOMFIELD, N.J.--(BUSINESS WIRE)--Alliance Advisors, a leading New Jersey based Proxy Solicitation and Corporate Advisory firm, has launched the Board Risk Score™ (BRS) for company management and Boards of Directors to gauge risk levels related to potential threats by activist investors.
Waheed Hassan, CFA, Senior Managing Director, M&A/Proxy Contest Group and chief designer of the BRS, said, “The BRS provides companies and institutional investors with an objective framework to evaluate the level of board's vulnerability to activist investors. The components of the BRS offer insight into potential areas of contention. As the BRS is dynamic and updated daily, it provides an effective tracking system to evaluate the impact of operating and share price performance on the board's level of risk.”
Tyler Herka, Assistant Vice President, Proxy Solicitation Group and lead for systems integration for the BRS, adds, “The BRS measures a company's performance, relative to its 4-digit GICS group. The Score is based on a proprietary model which evaluates a company's relative 5-year performance on key metrics, including: Total Shareholder Return, revenue growth, operating margin, Acquisition, Research & Development spending, history of earnings surprise, changes in analyst estimates, the impact of cash and short-term investment on Enterprise value, and Return on Invested Capital.”
“Having access to this form of early warning intelligence is vital for any corporate executive and board that has the potential of activist engagement against their company,” said Joseph Caruso, Chief Operating Officer and founding partner.
Alliance Advisors is a shareholder intelligence firm that specializes in proxy solicitation, corporate governance consulting, proxy contests, market surveillance and proxy management. Founded in 2005, the firm services more than 400 corporate clients globally.