OPINION: The battering in tech stocks could be viewed as a grim proposition for the once booming special purpose acquisition companies, not so says one operator.
So far 2022 has been forgettable at best for most investors in public and private technology firms. Life has also become harder for companies that want to raise capital, stay independent, and offer a liquidity event to their shareholders.
SPACs offer the option for Australian tech companies to go public in the US without a traditional IPO.Such mergers became popular alternatives to the traditional initial public offer, primarily because they give investors the possibility of redeeming their shares in the SPAC and getting their money back if they don’t like the target or valuation proposed for the merger.
During the same period, 88 companies with a total enterprise value of $US67 billion announced a business combination with a SPAC. A realistic valuation of the target company is the most important aspect of a proposed de-SPAC to discourage redemptions from the SPAC investors and facilitate the efforts to raise capital to satisfy the minimum cash condition of a deal.
One of the most notorious examples of a large earnout is Getty Images, one of the largest licensors of images and videos in the world. The company recently announced one of the largest de-SPACs of 2022, with an enterprise value of $US4.8 billion.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
As a cancer patient I felt dismissed by doctors. As a doctor, I am desperate for the system to changeWhen Ben Bravery began studying medicine after surviving bowel cancer he found something missing from the curriculum – patients
Read more »
After years in hiding from the Taliban, an Afghan ally meets the father of the slain digger he served withIn an emotional reunion, former interpreter Farid Raman has met the family of Australian soldier, Robert Poate, who was killed by a rogue Afghan soldier in an attack Mr Raman survived:
Read more »
Living to 110 has brought Frank joy and heartache — but he's glad he made itAustralia's oldest living person has survived two world wars, two global pandemics, and family tragedy. As he celebrates another birthday, he still loves life.
Read more »
Authors on the Salman Rushdie attack: ‘A society cannot survive without free speech’Writers including Margaret Atwood, Ben Okri and Ian McEwan have spoken out after the attack in New York
Read more »
'I was reporting on an unfolding crisis as my own family was trying to survive it'A year since Taliban forces took control of Afghanistan, SBS News journalist Rashida Yosufzai reflects on the fall of Kabul and what's happened to her family there since.
Read more »
The difficulty of marketing the Collingwood AFL captain’s houseIn a quiet winter market, the agent needed to maximise exposure but also needed to keep things as quiet as possible for the footy star and his family.
Read more »