Nearly 80 public SPACs globally hold more than $20 billion in cash and have not yet completed acquisitions. In the second quarter of 2019 alone, 16 SPACs raised approximately $4 billion, exceeding Q1 issuance of more than $3 billion.
“Investors are clearly more open to SPACs, appreciating the ability to learn a great deal about the targeted business acquisition. Major institutional investors are starting to participate in these transactions because of their ability to acquire a larger position versus a typical IPO, due to the structural nature of a SPAC,” said Don Duffy, President of ICR. “Having said that, the proper positioning and communication of the deal is key to garnering new shareholder interest, as well as shareholder approval to close a transaction.”
“To be successful, SPACs need an experienced team that understands the de-SPACing process, including positioning for the proposed acquisition, the industry, and the challenges related to quickly pivoting to targeting new shareholders, hosting an analyst day, obtaining shareholder support, then transitioning to life as a public company,” said Phil Denning, Partner at ICR. “In addition, an important, but often overlooked aspect of these transactions is the critical importance of making sure forward looking financial information disclosed during the transaction process is conservative and can be met or exceeded post close.”
ICR is the largest advisor and communications consultant to SPACs, having completed dozens of transactions over the past decade. To obtain a copy of ICR’s Q2 2019 SPAC update please click here.
Established in 1998, ICR partners with companies to execute strategic communications and advisory programs that achieve business goals, build awareness and credibility, and enhance long-term enterprise value. The firm’s highly-differentiated service model, which pairs capital markets veterans with senior communications professionals, brings deep sector knowledge and relationships to more than 650 clients in approximately 20 industries. ICR’s healthcare practice operates under the Westwicke brand (www.westwicke.com). Today, ICR is one of the largest and most experienced independent communications and advisory firms in North America, maintaining offices in New York, Norwalk, Boston, Baltimore, San Francisco, San Diego and Beijing. ICR also advises on capital markets transactions through ICR Capital, LLC. Learn more at www.icrinc.com. Follow us on Twitter at @ICRPR.