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    BDO Knows SPACs

     

Special Purpose Acquisition Companies, or SPACs, have seen a resurgence in popularity since becoming all but extinct after the 2007-2008 financial crisis. These publicly-traded companies are formed with the sole purpose of raising capital to acquire one or more unspecified businesses. The management team that forms the SPAC (the “sponsor”) forms the entity and funds the offering expenses in exchange for founder’s shares.


Although the COVID-19 pandemic has caused significant economic hardship for most, SPAC deals have accelerated at record-breaking pace. For investors, SPACs are low risk as they can recoup finances, and the potential for returns are higher than ever given the access to capital, low interest rates, and the ability to move quickly to close an acquisition. This provides target companies with the potential to grow exponentially despite the economic downturn as companies seek access to additional capital. In 2020, SPACs ended the year with 248 listings raising $83 billion—year-over-year increases of 320% and 513%, respectively. Through April 2021, we've already seen more than 310 SPACs raising more than $100 billion.

 

Charts that display SPAC transactions by month

 

HOW BDO CAN HELP

BDO is dedicated to helping both sponsors and target companies navigate going public through Special Purpose Acquisition Companies.
Our holistic services can support in any step of the process. 
 


 

Public Company Readiness

Roadmap to Remediation

Complex Accounting Assistance

SEC and Financial Reporting Assistance


 

Audit Services

PCAOB Audit
Sponsor Company Audit


 

Tax Services

SPAC Structuring and Consulting


 

Advisory Services

Exit Readiness
Financial, Tax and Operational Due Diligence
Internal Audit and SOX Compliance
Performance Optimization
Valuation Services and Fairness Opinions

GET IN TOUCH

BDO’s SPAC practice is comprised of experienced audit, advisory, and tax professionals.
 

CONTACT US

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