When a sponsor forms a SPAC, they receive an equity carry in the SPAC in exchange for providing the risk capital for the SPAC, and finding a target to acquire. This risk capital provided is an amount typically ranging from 4-7% of the total IPO amount. Many SPAC sponsors do not provide the entire amount […]
We’ve compiled many of the questions we’ve been asked surrounding SPAC Sponsorship, SPAC Mergers, and general SPAC questions into one comprehensive FAQ. If you’re looking for additional SPAC resources, download our: SPAC Sponsor Handbook ► SPAC M&A Handbook ► ClearThink Capital + SPACs ClearThink Capital offers advisory services to both Sponsor Groups or those looking […]
A SPAC goes through various steps and stages throughout its lifecycle. This post outlines the steps from pre-IPO through business combination. The Stages of the SPAC Process 1: Prospectus Filing The first stage in the SPAC lifecycle is the prospectus filing. This filing includes disclosure of the terms and structure of the SPAC offering and […]
Quick Facts Usage Mezzanine Finance is generally used in combination with an acquisition, restructuring, or other transactions, to bridge the gap between the total purchase price and the equity and senior debt that’s available. Costs High interest rates, mid teens up to the low twenties, including an equity component Term 3-5 years, often with yield […]
Preparing for a liquidity event or capital raise is a pivotal moment in a company’s journey. Whether you’re seeking investment, planning a merger, or structuring a public offering, the key to success lies in thorough preparation and strategic decision-making. Investors and lenders want confidence that their capital is in good hands, and this requires more […]
Potential investors will have lots of questions for your company. Prior to approaching investors, you should be able to answer all of these questions. What is your business model/how is your company going to make money? While it is important to focus on your product/service and acquiring customers, it is just as important to figure […]
Depending on a company size, needs, and industry, there are many types of available capital partners. This post outlines several different types of financial partners available to companies. The Types of Capital Partners Angel Investors Angel Investors are generally wealthy private individuals who invest in pre-revenue companies. They are may invest individually or as part […]
When contemplating financial, corporate, or M&A transactions, it is important to have a comprehensive data room in place. Any potential partners, whether investors, merger partners, or strategic partners will want to review all of the company’s documentation relating to their corporate structure, operations, and financings. The Steps to Building a Virtual Data Room Step 1: […]
Whether you’re funding expansion, developing new products, or stabilizing cash flow, the timing and strategy behind raising capital can significantly impact your company’s trajectory. However, there’s no universal answer to questions like when to raise capital, how much to raise, or which investors to approach. The right decision depends on your business’s unique goals, stage, […]