With numerous companies going through mergers via special purpose acquisition companies (SPACs), the need for auditors to complete an uplift process is imperative. In the case of Hyliion, RSM was already providing the company with audit and tax services, but also worked on the uplift process in Hyliion’s financial statements to prepare the company to go public in a much tighter time frame.
Hyliion, which makes tractor trailer powertrains that cut down on fuel consumption, went public through a reverse merger with Tortoise Acquisition Corp. Hyliion’s merger via a SPAC, which closed the afternoon of Oct. 1, 2020, allowed the trucking technology company to begin trading on the New York Stock Exchange the very next day.
In April 2020, RSM performed a capital market readiness assessment, which included the uplift process required by the SEC, enabling Hyliion’s financial statements to meet U.S. Securities and Exchange Commission requirements. With RSM’s assistance through the uplift process, the company was well-positioned to go public in an expedited manner.
Due to the compressed nature of a SPAC transaction, many companies find it beneficial to go public via the SPAC route. In addition to the speed of such a strategy, there is less strain to raise cash as there is in a traditional IPO, as SPACs already have the cash to move forward. In these less-than-certain times, SPACs are becoming a more popular option.
This article is reprinted with permission from the Austin Business Journal, Nov. 12, 2020.