SPAC Overview: Benefits of SPAC vs. Traditional IPO or Sales

SPAC Traditional IPO Sale
Upfront price discovery
Timing not subject to “IPO Window” or IPO backlog
Valuation Optimization
Greater ability to market projections
Possibility to execute transaction in ‘unfashionable’ sectors
Structural and tax flexibility
Ability for seller to monetize sizable stake
Relative speed of execution
Private negotiation with sophisticated counterparty
Retain Future Optionally
Retain stock/control
Distribute stock to existing owners
Public stock currency for acquisitions and growth capital