Please join us for a webinar on the impact that SPACs are having on venture-backed companies, and the issues companies, investors, and counsel should consider as they contemplate an acquisition by a SPAC as a potential outcome for the company.
Investment documents for venture-backed companies are typically drafted on the assumption that liquidity will come from either an IPO or an acquisition of a controlling stake in the company. The liquidation preferences, protective provisions, and other control rights that investors typically require in these documents, particularly in the Certificate of Incorporation, historically have not addressed the question of what happens if the company has the opportunity to access the public markets by way of a SPAC. As SPACs have recently gained tremendous popularity and traction and are increasingly viewed as a viable option for venture-backed companies to raise capital or achieve a full or partial exit, it is critical that companies, investors, and practitioners understand the implications of a SPAC on all stakeholders and tailor investment documents to achieve their desired result.
Our discussion will include:
- A brief overview of SPACs - the structures and economics
- The advantages of a SPAC over a traditional IPO
- The effects a SPAC acquisition might have on investors' preferences
- Suggested approaches to navigate this environment
- Recommended language to consider for drafting
Speakers:
Dr. Avi Katz, Founder, Chairman and CEO, GigCapital
Josh DuClos, Partner, Sidley
Andrew Harper, Partner, Sidley
Geoffrey Levin, Partner, Sidley
For questions, please contact paevents@sidley.com.
