Emergence of the SPAC Option for Private Company IPOs
Over the last few years, a new path has emerged for private companies to monetize their assets via a business combination with a Special Purpose Acquisition Company (“SPAC”) as compared to traditional options. The success of SPACs has fundamentally altered how companies think about access to the capital markets to fuel and accelerate their growth trajectory. The traditional option, which primarily includes engaging in an Underwritten IPO, raising additional rounds of venture capital funds, forging a joint venture or selling the asset to a third party, is still prevalent; however with the emergence of the SPAC model, companies are wise to explore whether the SPAC approach better suits their needs. Join our panel of experts to explore the IPO track options and why combining with a SPAC may be your Company’s best path.
- Pros and cons of a SPAC business combination relative to traditional private company IPOs.
- Possibility of a SPAC combining with an already-listed company.
- Considerations for target companies, their equity owners and management teams involved in SPAC transactions.
- IPO readiness requirements for a SPAC combination.
- Processes & timelines for SPAC combinations versus a traditional IPO.
Partner, Kirkland & Ellis
VP, Deputy GC and Corporate Secretary, Draft Kings
EVP, GC and Secretary, Target Hospitality
VP, Advisory Sales, Datasite