Beware of These Five SPAC Risks

ACG Partner - Official Sponsor of Growth

DHG is an Official Sponsor of Growth (OSG) for the Association for Corporate Growth (ACG), a global organization that operates through 59 regional chapters worldwide and more than 100,000 middle market professionals who invest, own and advise growing companies. As an OSG, DHG supports ACG’s mission to drive middle market growth by providing meaningful thought leadership contributions and offering support of the organization’s key strategic initiatives.

Growing companies looking to partner with Special Purpose Acquisition Entities (SPACs) is becoming an increasingly popular alternative to the traditional, and potentially complex nature, of an initial public offering.

Many companies, particularly in high-growth industries, have been eyeing SPAC acquisitions as a possible route to an influx of cash. However, going public through a SPAC comes with its own considerations. The rushed timeline for SPACs to identify a target and close an acquisition, typically within two years, combined with the ultimate reporting requirements of the new public entity, can result in an uphill battle not foreseen at the start of the process.

ACG Partner - Official Sponsor of Growth

DHG is an Official Sponsor of Growth (OSG) for the Association for Corporate Growth (ACG), a global organization that operates through 59 regional chapters worldwide and more than 100,000 middle market professionals who invest, own and advise growing companies. As an OSG, DHG supports ACG’s mission to drive middle market growth by providing meaningful thought leadership contributions and offering support of the organization’s key strategic initiatives.

If you are considering a SPAC investment, be cognizant and aware of the following risks:

5 SPAC Risks: Misaligned Goals, Deal Collapse, Delayed Timelines, The Responsibilities of Being Public, Talent Attrition

Read full article, as published by ACG's Middle Market Growth, by clicking below.

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This article is partially reprinted here with permission from Middle Market Growth.

ABOUT THE AUTHORS

Louis Mannello
Accounting & Financial Reporting Leader
Louis.Mannello@dhg.com

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