While it may not be the first thing you think about when planning for a merger or IPO, sooner or later, your company will need to tackle investor relations. Read on to learn the basics of the investor relations role.

New partnership equips companies with SOX compliance, board management and financial reporting technology tools to successfully go public

While SPACs were once viewed as the back door route to going public, these days, the IPO alternative is mainstream. SPACs are in the news nearly every day as major companies are opting for the SPAC route to taking a company public. While they may be trendy, SPAC is still a complex process and one that requires ample preparation.

The following SPAC checklist of documentation and SPAC readiness information should help you navigate the SPAC process timeline with ease.

1. Legal

SPAC vs. Traditional IPO

As of December 2020, more than 200 companies had used a SPAC (special purpose acquisition company), to go public, rather than the more traditional IPO (initial public offering) method. SPACs continue to dominate business headlines, with SPAC transactions accounting for some $170 billion in equity thus far in 2021.

When a company is taken public using a SPAC — which stands for Special Purpose Acquisition Company — the process may seem similar to a merger. While there are many similarities, there are also a few ways that the de-SPAC process differs from a merger. In short, a de-SPAC transaction is defined as a company merger involving a SPAC, a buying entity and a target private business. Learn the process, timeline and requirements for the de-SPAC transition to prepare the business and the documentation that's needed.

Special purpose acquisition companies (SPACs) offer an alternative path to the IPO when taking a company public. Below, we’ll answer the question, “What is a SPAC?” along with covering the SPAC process and why more business leaders are choosing SPAC vs. IPO when taking their companies public in the present market.

1Q21 was record breaking with 298 SPACs raising ~ $88 billion* excluding over-allotments. 2021 has already surpassed 2020's record year by deal value and volume. Aside from the historical number of SPAC IPOs, 24 business combinations completed, and 94 SPACs announced their target in the quarter, lending to what will be a record year for De-SPACs.

The special purpose acquisition company (SPAC) market has boomed over the past several years, with continued increases in IPO activity and record completions of de-SPAC transactions. More than 50% of total IPOs in 2020 were SPACs, this represents a 4x increase from the previous year. As of March 25, 2021, 445 SPACs have filed with the SEC with 296 SPACs pricing, raising over $89 billion*. This surpasses 2020's record number of 248 SPACs raising over $76 billion* for the full year of 2020.

Will 2021 Be a Good Year for U.S. Markets?

Despite the pandemic, 2020 was the biggest year for IPOs since 2014, and I am confident that the positive trend will continue for IPO stocks in 2021. It’s already getting off to a fast start with the Wall Street debut of mobile game developer Playtika Holding (PLTK), which benefits from strong videogame demand and a popular lineup of titles like Slotmania, Bingo Blitz, and Board Kings.

Investment Outlook: 2021 Looks Bright – a blog by Craig Clay, President of Global Capital Markets, DFIN

Despite the pandemic, 2020 was the biggest year for IPOs since 2014, and I am confident that the positive trend will continue in 2021.