The term shark watcher refers to a professional or firm that specializes in the early detection of hostile takeovers. Shark watchers are hired by firms that are concerned about the possibility of being targeted by larger corporations. They monitor aspects of a firm's trading activity on the market that could indicate a possible takeover, such as who is accumulating shares and the number of shares acquired.
Large corporations often look at smaller companies and startups as easy takeover targets. The target firm may have a product or service worth acquiring, the acquirer may want to tap into a new market, its business operations may align with the acquirer, or the target may be competing with the larger company.
When a company doesn't want to be taken over, the potential acquirer may decide to pursue a hostile takeover. This occurs when the company behind the takeover tries to buy enough shares of the target on the open market or by purchasing shares from existing shareholders. Acquirers may also try to take control of the company and replace its management team to approve the takeover.
Companies may have experience problems with their share prices as a result of issues with management, finances, or its business. Potential targets have to be vigilant to prevent themselves from being taken over. One way to do so is by hiring what the financial industry calls a shark watcher.
The term is analogous to a large shark swimming around a body of water in search of smaller fish to swallow up.

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