You’re gearing up to go public—but rather than a traditional IPO, you’re entering the market via a SPAC transaction. You know the basics, but admittedly, you’re no expert. You’ve noted the big milestones, but what can you really expect? We’ve gathered five takeaways from CFOs who have been through the process and successfully exited on the other side. Here’s what you need to know.
1. Do Your Research
As a target company, it’s important to research the SPAC, in particular the sponsors, and understand how they’re positioned in the investment community. If it’s an unknown company, that’s where the SPAC sponsor’s ability to generate interest comes into play.
2. Consider an Independent Advisor
Having an independent advisor, particularly throughout the de-SPAC process can be extremely beneficial as they can act as a counterbalance to internal elements. The right consulting team cannot only help tackle the day-to-day challenges, but also provide tactical, big-picture support.
3. Educate Your Employee Base
Going public is a transformative process that affects all parties, including employees. Openly communicating with your employees is important from both an internal and external messaging standpoint. Part of the communication strategy should be educational, particularly surrounding the process itself and at what stages information can and cannot be shared. It’s important that employees understand for legal purposes, internal communication will often occur following or concurrent with external releases.
4. Determine How To Communicate Your Company Story in the Marketplace
From consumer branding initiatives to external communications, determining how you differentiate your true brand voice from the transaction itself can prove challenging, particularly in a SPAC transaction. Be prepared to strike a balance between legal restrictions and your authentic brand story.
5. Be Ready To Put Technology and Businesses Processes in Place
When it comes to internal controls, it’s often a long-term process, but evaluating current controls is a good first-step to preparing and executing an internal control plan. By tackling ERP early, you can spend less time aggregating and gathering data and more time analyzing the information and getting the insights needed to make actionable decisions.
How MorganFranklin Can Help
MorganFranklin has a proven methodology to assist companies in successfully entering the public markets through acquisition by a SPAC (“blank check company”). By focusing on both the SEC reporting requirements, and public company readiness, our services will enable a company to complete its transaction on time and to be prepared for life as a public company.
