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Our Team
Investor Resources
Target Criteria
SEC Filings
Corporate Governance
News
NASDAQ: (MON, MONCU, MONCW)
IBJ
Contact
Benefits and Considerations of SPAC Merger vs. Traditional IPO vs. Cash Sale
ADVANTAGES OF A SPAC
SPAC BUSINESS COMBINATION
TRADITIONAL IPO
CASH SALE
PROCESS
Merger with SPAC that results in the target becoming a publicly traded company
Equity capital raise from public investors
Typically primary issuance to fund future growth
Sale of entire/partial equity stake to financial sponsor or strategic buyer
TIMING
Certainty in as little as 4 weeks
Closing in as little as 4 months
Up to 12 months
No minimum time requirements
BENEFITS
Establishes public currency
Target company will know valuation at the outset of process
More streamlined process / less reliant on equity window than traditional IPO
Able to use projections in marketing
SPAC sponsor can shepherd target through going public process
Establishes public currency
Orderly trading post-IPO can support positive momentum
Potential for full monetization
More traditional transaction process
Speed of execution
CONSIDERATIONS
Investor turnover can create near-term pressure
Can be dilutive
Valuation uncertainty until pricing
IPO windows can be unpredictable which may prevent ability to execute
Expensive and lengthy process
Limited potential for equity rollover
Limits ability to participate in future growth
More dependent on debt financing market conditions