Cathal Deasy: Hey, Jim.

Jim Rossman: Hi, Cathal.

CD: Looking forward to our conversation today.

JR: Great.

CD: Here we are 12 days after Liberation Day and clearly there's been a lot going on in the financial markets and our clients have been facing a lot of disruption. I'm delighted to be here with Jim Rossman, the head of our shareholder advisory practice.

JR: So Cathal, client inquiry is really picking up about the current uncertainty and volatility. What's your perspective?

CD: We've seen the financial system be very resilient during this time. We are keeping a close eye on the bond market and treasuries in particular. And the economic outcome is very uncertain.

JR: Right, 100%. Activists thrive on uncertainty and volatility. This is a great opportunity for them to challenge companies.

CD: I accept that, Jim. But activists are also vulnerable to uncertainty and volatility. Are they going to really put capital at risk?

JR: It’s a good point. It may cause them to pause, but if you think about it, this is a once in a cycle opportunity for them. Valuations are depressed. Decisions that once were thought, strategic and smart are now being questioned. Current portfolios may not work in the new environment, where new winners and losers are going to be created.

CD: I get that. So what should our clients be doing today to prepare in light of this vulnerability?

JR: They should be doubling down on three things capital discipline is going to be critical. They need to review their capital plans and figure out where do they want to put their money to work and where they want to hold back.

JR: M&A needs to be cautious. Portfolios need to be reviewed again to see which ones may be the winners and which ones may be the losers. We may not have a crystal ball to see where we're going to be in three months, six months or a year but you need to start planning now and figuring out what your alternatives are.

CD: I think like in other crises, we're going to see a broad dispersion of outcomes for corporates. So I think that plan and scenario planning is critically important at this particular time.

JR: Absolutely. We're in a shareholder environment which has become very impatient and aggressive. Activists have new tools like the universal proxy to seek board change. Last year, we saw a record number of CEOs replaced by boards because of shareholder activism. If companies don't prepare and plan, they're really going to be at risk.

CD: I think the message is clear. While there's a lot of uncertainty in company's business plans, business models may be challenged in light of a new world order, in light of tariffs, in light of disruption to supply chains. This is a topic that companies need to take very seriously and I think the work that you're doing with your team is absolutely critical to help our clients prepare.

JR: Thanks, Cathal.