We provide independent research on Special Purpose Acquisition Companies (SPACs) and de-SPAC transactions. Our work explains how trust value, redemptions, minimum cash conditions and financing shape outcomes, timing and trading. We translate the mechanics of SPAC mergers into simple probabilities and a plan for what to watch next.
We follow the full SPAC journey from IPO to deSPAC. That includes extension and combination votes, how sponsors are incentivised, trust and warrant terms, and the role of PIPE and forward purchase funding in meeting minimum cash.
We also review valuation and disclosure, listing rule compliance, and the post merger features that shape how a new issuer trades, such as lock ups and earn outs. If approvals or funding fall short, we assess the termination or liquidation path and what it means for holders.
We monitor SPAC arbitrage opportunities that mainly involve owning SPAC shares at or below current net asset value. There are two straightforward ways to make money. First, if a business combination is announced and the stock trades above net asset value (NAV), you can exit at that premium. Second, if the deal is not attractive or never closes, you can redeem at the vote or receive cash in a liquidation, in both cases at the then net asset value, which is the IPO price plus accrued interest. This structure can provide downside protection, but it still requires close attention to redemption mechanics, settlement timing and funding certainty around the SPAC merger.
We review the proxy or S-4, sponsor and PIPE agreements, trust and warrant indentures, and any forward-purchase or backstop commitments. From there, we build a funding view that considers trust per share, plausible redemption levels, the reliability of committed capital and the practical tests set by minimum cash conditions.
We then map the shareholder vote and process mechanics: record and meeting dates, extension and combination thresholds, redemption and reversal rules, tabulation risks and any adjournment strategy.
Our valuation work focuses on the target’s fundamentals and comparables, the structure and triggers of earn-outs, and the dilution created by warrants and the sponsor promote. We track regulatory and disclosure risk through SEC comments, accounting treatments and listing-rule compliance, and note any sector-specific approvals that can affect timing.
We provide a clear, probability weighted view of whether the deal will close, be delayed or lapse, and we set out likely break price ranges and how each scenario could affect both the SPAC and the proposed target..
If you are a qualified investor and would like to speak to us about a live SPAC or de-SPAC, please get in touch.