SPACs Require Best-in-Class Communications From the Get-Go

May 4, 2021
< 1 Minute Read
Moira Conlon

Are you prepared to hit the ground running when your company goes public in a SPAC transaction? Moira Conlon, President of Financial Profiles, shares her insights on how strategic messaging can make - or break - your transition to a public company and the ability to access capital to support growth in her guest essay for CFO.com

While SPAC transactions have long been considered a last resort way to go public, they are now thriving and represented about half of all IPO issuance in 2020. Today’s special-purpose acquisition company deals have been validated by numerous high-profile sponsors, established and successful private companies leveraging the structure to go public, and top-tier institutional investors and investment banks participating in these transactions.

Nevertheless, the SPAC structure is unique. From a communications perspective, there are important nuances companies should consider. In our experience, establishing a strong investor relations foundation and leveraging best-in-class investor communications from the start are critical competitive advantages for companies entering the public market through SPAC transactions.

Public company messaging shifts from communicating about the features and benefits of a product or service to the features and benefits of investing in the company.

Get ready to be a public company. Companies going public in a SPAC transaction find it especially challenging due to the compressed time frame relative to a traditional IPO. Keep in mind that the average length of time from signing a letter of intent (LOI) to announcing a business combination is just a few months.

The full essay shares insight on how to implement these key actions:

  • Build a detailed timeline and expect things to change along the way.
  • Get familiar with the Wall Street audience.
  • Get the message right.
  • Think carefully about forecasts.
  • Prepare well for PIPE investor meetings.
  • Make the most of the business combination announcement.
  • Make Wall Street marketing a high priority.
  • Begin work on Form S-4 as soon as the LOI is signed.
  • Prepare carefully for analyst day.
  • Prepare to hit the ground running as a public company.

Read the full essay on CFO.com.

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