Intelligent CXO Issue 01 | Page 43

FEATURE
Roger James Hamilton , CEO and Founder of Genius Group
will review the SPAC merger filings , is imperative as this will be done to the same standards as an IPO . Being prepared and ready to operate as a public company will enable a swift SPAC merger .
To highlight the potential that SPACs can offer business , the UK is now looking to relax trading regulations in a post Brexit overhaul . Chancellor of the Exchequer , Rishi Sunak , said : “ We ’ re determined to enhance this reputation now we ’ ve left the EU ” and the Government are now looking at proposals to ignite the dormant market of SPACs . standards when it comes to fundraising and the return on investment ( ROI ), building investors ’ confidence in SPACs .
One area that businesses should be mindful of is that not all SPACs are the same and unlike a traditional merger deal , where the buyer and seller seek out business synergies , a company looking to merge with a SPAC needs to agree with the sponsor ’ s long-term business goal .
There are many benefits of merging with a SPAC , from greater access to capital to greater market certainty and the option to structure the deal to suit the company . However , being prepared is still hugely important if choosing this growth method . Audit and reporting uplifts , internal controls assessment and putting in place measures to meet public company reporting are all necessary .
Meeting regulatory requirements set by the Securities and Exchange Commission ( SEC ), which
2020 was the busiest year for SPACs with US $ 83 billion raised . What we are seeing is institutional investors piling money into investment vehicles , where the only business plan is to have a plan to buy other companies . SPACs are helping level the playing field and allowing more companies to go public without the extended paperwork , fees and risk . A great alternative to IPOs for many businesses and a proven strategy for business looking to grow quickly . What effect SPACs will have on the stock market is yet to be seen but could result in a collapse of the IPO market . Watch this space . x
WITH US STOCK MARKETS FLUCTUATING , TRADITIONAL IPOS LEAVE COMPANIES SCRAMBLING TO FLOAT ON THE MARKET AT JUST THE RIGHT MOMENT . www . intelligentcxo . com
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