SierraConstellation Partners has developed a ‘playbook’ for a SPAC deal process, applicable at any stage in the SPAC lifecycle, and proven through successful outcomes with our clients.
Key considerations for successfully accessing the public equity markets through a de-SPAC merger:
- Thorough due diligence and speed of execution are mission-critical priorities in a SPAC deal process that are often conflicting considerations.
- The company’s business plan and financial projections must be defensible and disclosed publicly in a way that protects the company’s board, management team, and insider investors.
- Management must prioritize running the business, and not be consumed by the deal process.
- Investor Relations and FP&A functions must be adequately prepared to ‘go public’, with a significant increase in their workload to support their new public company.
- Operations managers must be able to deliver on the business plan with sufficient experience and resources, supported by a workplace culture that strives for constant improvements and cost reductions to drive shareholder value creation.
SCP’s ‘Playbook’ for readiness to successfully transition privately-owned operating businesses to publicly traded companies is beneficial to our clients (SPAC sponsors, PIPE investors, and the boards and management teams of target companies) in that we add value while also mitigating risks for a successful outcome.
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Learn about the unique aspects of the SPAC structure and a de-SPAC merger; key considerations for our clients involved with, or considering, a SPAC deal; and our distinguished qualifications to advise and create value throughout the SPAC lifecycle. In his article titled, “With Regulators Watching, New SPAC Considerations Emerge for Market Participants,” Taylor Sherman, Managing Director and Head of our Houston office, discusses how going public through a Special Purpose Acquisition Company (SPAC), or a “blank check” company, is more efficient and cost-effective than the traditional IPO for many investors and private companies, provided all parties involved are disciplined throughout the process. Hiring an operations-focused financial advisor is proving to be ‘mission critical’ to ensure a successful outcome. Read more »