Is a SPAC the right route for your organization?

Why Draft Kings decided on a SPAC merger

Jan 08, 2021
Financial consulting
Technology industry SPAC Mergers & acquisition Going public

More and more businesses have been turning to special purpose acquisition companies (SPACs) to go public as an alternative to a direct listing or IPO. SPACs, sometimes called blank-check companies, are created specifically for the purpose of such transactions. Once seen as a last-resort option for going public, SPACs have grown in popularity in recent years. Leaders in high-growth industries may want to learn more about this method, especially given the strong showing SPACs have made during this year’s recession.

There are a range of factors business leaders should consider when deciding whether a SPAC is the right route for their organization, including timing and capital implications. SPACs typically have about 18–24 months to identify and complete a transaction.

Learn more in the video linked below, in which RSM partner and national capital markets leader Steven Edwards talks to DraftKings board member Steve Murray about why DraftKings decided to go public via a SPAC in 2020.


Are you prepared?

A SPAC merger has all the complexity of an IPO compressed into a short timeframe. Find out how to get the help you need with our nine critical business areas key to your SPAC readiness.