SPACs as an Express Track to IPO with BDO
Special Purpose Acquisition Companies (SPACs) or blank check companies, have seen a resurgence in popularity that provide a capital raising alternative to initial public offerings (IPO). Additionally, referred to as a “reverse merger” since the management team that forms the SPAC (the “sponsor”) creates a shell company with the intent to fund the offering expenses in exchange for the founder’s shares. For private companies (or the “target”), IPO through a SPAC provides potential to grow exponentially.
Going public via a SPAC transaction is attractive as it generally comes at a lower cost and expedited timeline, however, the SPAC IPO process is highly regulated, complex and requires specialized experience to manage the process. Rushing through the process without the right expertise can put a successful outcome at risk, including loss of funding and reputation among supportive investors.
Contact BDO for Tax, Audit and Advisory Services
BDO is dedicated to helping both sponsors and private companies navigate going public through SPAC transactions. You may be still exploring your options or ready to take that next step. Wherever you are in your journey, our team is here to help you. BDO can help with tax, audit, and advisory services as well as public company readiness for private companies.
Our experienced team can provide guidance and support through every stage of the process including:
- Founders Shares
- Public Funds
- Funds Coming Into Trust
- IPO Filings
- Warrants
- Common Stock Publicly Traded
