The used-car market announced its SPAC in June 2020

When startup entrepreneurs consider going public, they usually consider getting ready for a going public (IPO). Going public by means of a special function acquisition company (SPAC), commonly described as a reverse merger process, is another route that’s ending up being more popular and is also worth considering.

When Manish Patel, among Shift’s board members, first suggested that I learn more about SPACs back in 2019, I had no hint what he was discussing.

Now, just over a year later, we have actually nearly finished Shift’s SPAC process. I hope that what we have actually gained from our experience works for other CEOs and founders thinking about a SPAC.

Shift announced its SPAC in June 2020 and is expected to complete the procedure of going public later on this year. Here are a few of the things you and your group may want to get in order if you have actually chosen that a SPAC might be a suitable for you and your organization:

Be ready to become a SPAC specialist

SPACs have actually been around for a variety of years, but they have actually ended up being en vogue in recent months, specifically given how well the public markets have held up in the COVID-19 era. Even still, don’t anticipate others to understand the SPAC procedure right off the bat.

You’ll require to become a professional at monetary engineering if you go the SPAC path. When we first began the process, I had to invest a great deal of time educating our investors and team about how SPACs work and their validity. So I have actually had to come to the table with examples of when SPACs have actually worked and why, with a great deal of information to back up my claims. Keep in mind that going through a SPAC will likely be a new process for all of them too. Even if you have actually been through a successful IPO procedure, you’ll still require to inform yourself– the SPAC procedure and the IPO procedure are totally different.

Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.