SPAC Advisory Services

M&A SPAC Advisory Service

Special Purpose Acquisition Companies (SPACs)—often termed “blank check companies”—are shell companies formed solely to raise capital through an Initial Public Offering (IPO) for the purpose of acquiring or merging with an existing private company. This provides a distinct and often accelerated alternative route for private firms to enter the public market.

MergersCorp M&A International’s SPAC Advisory Services support sponsors, investors, and target companies through the complexities of this evolving market, guiding them through the crucial De-SPAC transaction.

Understanding the SPAC Appeal

The appeal of SPACs lies in the unique advantages they offer compared to traditional IPOs:

• Speed and Efficiency: SPAC transactions generally offer a faster and more efficient route to the public market than conventional IPOs.

• Securing Capital: Target companies secure capital without the extensive regulatory hurdles and market timing risks associated with a traditional listing.

• Experienced Backing: SPACs are often backed by experienced sponsors, offering target companies expertise and credibility.

Role of SPAC Advisory Services

Our services encompass a range of functions designed to guide all participants through the intricacies of SPAC transactions and the subsequent transition to being a public company:

1. Financial Structuring and Valuation

Advisors play a key role in structuring the financial framework of the deal (the “De-SPAC”).

• Valuation Techniques: Determining the appropriate valuation for the target company, ensuring a balanced approach to equity stakes.

• Capital Structure: Assisting with negotiating terms, the capital structure, and securing potential Private Investment in Public Equity (PIPE) financing to support the transaction.

2. Communication and Investor Relations

Effective communication strategies are essential for managing stakeholder expectations and fostering investor confidence, both before and after the merger.

• Stakeholder Management: Aiding in crafting communication strategies, developing essential presentation materials, and organizing targeted investor outreach programs.

• Market Education: Providing the necessary support to introduce the newly public company’s narrative to the public market ecosystem.

3. Post-Merger Integration and Compliance

Following a successful merger, sustained support is vital for integrating the newly public company into the market.

• Public Company Readiness: Assisting with ongoing SEC compliance, regulatory filings, and corporate governance.

• Investor Engagement: Supporting shareholder engagement and providing strategic planning for long-term growth as a publicly traded entity.

Commitment to Absolute Confidentiality

SPAC transactions are highly market-sensitive. The identity of the target company is strictly confidential until the official merger announcement. MergersCorp maintains the strictest confidentiality regarding all deal negotiations, PIPE discussions, and due diligence findings to protect the transaction’s integrity and prevent adverse market speculation.

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