Long Term Returns of Jeff Smith’s 5 Activist Targets

1. RB Global, Inc. (NYSE:RBA)

Activist Investment: 2023
Long-Term Returns: 25.6% Gain
S&P 500 Gain: 18%

RB Global, Inc. (NYSE:RBA) is a global leader in asset management that offers live and online auctions, among other services. The company conducts auctions at physical sites worldwide while providing asset storage, onsite equipment inspection, and certainty for sale.

The company was the subject of a strategic investment from Starboard Value in early 2023.

The activist investor purchased $485 million of convertible preferred stock and $15 million of common shares of RBA. The investment entitled Starboard for a seat on the board. RB Global, Inc. (NYSE:RBA) caught the attention of the activist investor in late 2022 after it entered into a merger agreement to acquire IAA. The acquisition has been fraught with opposition, given that IAA is a company that has not been run very well and has been losing market share.

While the activist investor also joined the bandwagon in questioning the acquisition unit, it later changed its position after engaging Ritchie Bros Auctioneers Inc. management and board. The company secured enough votes to secure the acquisition in March despite some activist investors opposing it.

It still needs to be made clear the long-term plans that Starboard Value has for the online auction company and how they will affect RB Global, Inc. (NYSE:RBA)’s performance and shareholder value.

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