Spac
SPAC is a method for overseas backdoor listings, with the full name as “Special Purpose Acquisition Company”. The SPAC financing model combines the features and objectives of various financial instruments such as direct listings, overseas mergers and acquisitions, reverse takeovers, and private placements, while optimizing each to achieve the goal of corporate listing and financing.
This financing method originated in the mining industries of Canada and Australia but achieved true success in the more open and innovation-friendly markets of the U.S. and the U.K. It was first formally introduced to the market by GKN Securities (the predecessor of EarlyBird Capital), which also registered the "SPAC" trademark in the same year. A SPAC is a financial instrument designed to facilitate corporate listings.
Listing via a SPAC not only meets the minimum public listing standards set by the U.S. Securities and Exchange Commission (SEC) but also offers significant advantages over traditional overseas listings—saving time and reducing costs. Compared to conventional shell company acquisitions, a SPAC's shell is clean, free from historical debts or legal issues.
As a U.S. SPAC partner, IPOF provides the optimal SPAC solution, enabling your company to quickly enter the U.S. capital market at minimal cost.
What are the advantages of SPAC? Let IPOF realize it for you!
Certain purchase price
Unlike the IPO, the purchase price of SPAC does not change; the value is determined by negotiation between the SPAC, the sponsor and the managers of the private company.
Speed of the process
The acquisition can be completed in less than two months (usually 2 to 4 months) with active management, faster than IPO or the complete seller's process. The enterprise can enter the public market quickly.
Flexible of the structure
A creative M & A structure can be designed; it can sell all of the ownership shares, retain premium shares, reduce the risk of bet options.
Cash out
The shareholder who sells the stock or the owner of the target company may need a lot of cash and retain a significant stake in the listed company after acquisition.
If you have any questions about SPAC mode, take a look at our SPAC page。Or if you need to contact us, you canClick here to find your local Office。
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