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Special Purpose Acquisition Companies (SPACs) Consulting

Special purpose acquisition companies (SPACs) have increasingly become an attractive alternative to access the capital markets. Whether executing a SPAC formation IPO, a SPAC reverse merger (de-SPAC), or preparing to be a public company, Riveron has the expertise to guide companies successfully through the process with a full range of SPAC solutions. We help execute the transaction, improve organizational readiness, and navigate the financial reporting environment. Our SPAC consulting teams are equipped with the experience to manage the challenges and pitfalls while streamlining processes and ensuring filing requirements are met.

We provide comprehensive SPAC consulting and support during the transaction, including:


What Is a SPAC?

SPACs are companies that are created with the purpose of merging or acquiring a business to take it public, and it is an increasingly popular alternative to taking a company public. After forming a publicly traded SPAC, it raises capital through an IPO with the express purpose of purchasing an existing private entity. Once the purchase is complete, the target company is either acquired by or merged with the SPAC company to become listed without the need for its own IPO. The advantages of this approach include potentially lower transaction fees, better access to capital, and a shorter timeline than a traditional IPO. However, it requires companies stick to an accelerated timeline, with the target company needing to be ready to operate as a public entity within three to five months of signing the initial letter of intent.

The Lifecycle of a SPAC

The amount of time the typical SPAC merger can take varies depending on the specific parties involved, although most can expect a timeline between one and two years to complete. The main steps in the SPAC process are:

  1. SPAC Formation/IPO — Once a SPAC is established, it creates an investment thesis that narrows its focus for an acquisition target. It also initiates the IPO phase during this time.
  2. Searching for Target Company — With IPO funding placed in a trust account, the SPAC usually has up to 24 months to find a target company and complete the acquisition or merger. If this is not accomplished within the timeframe, the SPAC is liquidated, and IPO funds returned.
  3. Completing the Merger — Once the target is identified and an agreement is reached, SPAC shareholders hold a vote to determine if the deal should be completed. If the shareholders vote against the merger, they may redeem their shares at this time. Otherwise, the deal is completed, and the target company is listed as a public entity.

Is a SPAC Right for Your Company?

Compared to the standard IPO process, there are a number of reasons why a SPAC might be a good option for taking your company public. For example, you may have greater flexibility in negotiating the terms of the deal, such as adding more equity. You also can enjoy more certainty in the market because you have the option to negotiate the price of your stock with the SPAC sponsor, protecting you from volatility. Our SPAC consulting team can help you determine whether this is right for you.

Riveron offers a wide array of services for the SPAC process. If you want to learn more about what makes us one of the leading SPAC firms in the industry, contact us today and speak with one of our representatives.

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Related Offerings

Equity Capital Markets Advisory
Strategic Communications
IPO Accounting Readiness & Execution
Special Purpose Acquisition Companies (SPACs) Consulting
SOX Readiness
Debt Offerings

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