Valuation of SPAC Securities: Challenges and Solutions

A common vehicle for making companies public

Special Purpose Acquisition Companies (SPACs) have become a common vehicle for management to take companies public.

As highlighted in a recent SEC statement, the accounting treatment and valuation of SPAC shares and warrants presents special challenges for investors, sponsors and founders.

With this webcast, you will learn:

• An overview on the valuation of SPAC securities in light of current SEC guidance and the U.S. GAAP fair value principles
• Common terms of SPAC warrant agreements
• Practical examples of how agreements can be reflected in valuation, using valuation techniques such as option pricing models, scenario analysis and Monte Carlo simulation
• Special features in the valuation analysis of founder shares
• The key contractual terms that affect the valuation of SPAC securities

Key Topics

• Overview of SPAC current markets
• Valuation of SPAC warrants
• Valuation of SPAC founder shares and PIPEs

Learning Outcomes

• Identify key contractual terms that affect the valuation of SPAC securities in a SPAC prospectus and agreements.
• Recognize hot-button topics from both a GAAP and valuation standpoint.
• Recall techniques such as option pricing modelling, Monte Carlo simulation and Scenario analysis to the valuation of SPAC securities.
• Identify valuation policies and approaches that are consistent with U.S. GAAP for SPAC securities.

Who Will Benefit

• Company and SPAC management, valuation analysts, investors, founders and sponsors who would like to gain insight into SPAC valuation.
• Finance department personnel at private and public companies