FREQUENTLY ASKED QUESTIONS
What is a SPAC?
A Special Purpose Acquisition Company (SPAC) is a publicly traded company that raises a blind pool capital through an initial public offering (IPO) for the purpose of acquiring a company.
What are the typical benefits of a SPAC?
- Structural flexibility – a SPAC allows for a flexible transaction that provides different outcomes for different stakeholders (management, employees, previous investors, new investors, etc.)
- Rapid execution – the upfront burden of disclosure and fundraising is placed on the SPAC itself, as opposed to the target company. However, the disclosure requirements, once public, are the same as a traditional IPO.
- Immediate liquidity – can deliver meaningful cash proceeds to those that choose to sell, working capital to grow business, and a liquid stock currency to pursue accretive M&A.
- Managerial expertise and/or strategic partner – SPACs provide affiliation with a leading operator and/or financial sponsor.
What else should I know about SPACs?
SPACs have increased significantly in popularity and are becoming a viable alternative to a traditional IPO for many blue-chip companies. The improved reputation of SPACs have led to the involvement of top tier financial partners such as Hudson Bay Capital, Blackstone, Apollo, bulge bracket investment banks such as Credit Suisse, Goldman Sachs and Morgan Stanley, Fortune 500 CEOs as SPAC managers and board directors, and top law and CPA firms.
Is my company a good acquisition target for a SPAC?
If your company is privately-held, experiencing high growth and revenue, has a unique core technology, and has significant traction with commercial customers, then it might be a strong target for acquisition by SCVX.
How do I get in contact?
Reach out via the Contact Info at the bottom of our website, or feel free to reach out directly.
