Evan Ferl’s Post

What is a Blank Check Company? A blank check company, also known as a special purpose acquisition company (SPAC), is a unique entity that has been gaining significant attention in the world of finance and investing. But what exactly is a blank check company, and how does it work? 📊 In my latest blog post, I provide a comprehensive overview of blank check companies and their role in the investment landscape. From understanding their structure and purpose to exploring the advantages and risks associated with investing in SPACs, this guide will equip you with the knowledge to navigate this emerging trend. 🌟 Join me as we demystify the concept of blank check companies and dive into the world of SPACs. Let's explore the potential for growth, innovation, and opportunity that these unique investment vehicles offer in today's dynamic market.

There are only a few public sales technology companies but a lot with ambitions of going public. Because of this. private equity and VC's have a disproportionate voice in the market's future as companies need funding as they march towards profitability. Without funding, Sales tech companies cannot innovate and will lose relevance. This article provides insights into the IPO market and what companies and investors are looking for. This quote stood out to me and would align to more investment into sales technology. "If you're a seller in this market, you're more willing to accept certainty and speed versus price. I feel we're heading into a constructive market. Especially given a built-up pipeline of both buy- and sell-side demand, and capital availability. The question is, will it appear this year or next?" https://lnkd.in/g4347UJs

Series A Deal Terms in 2002 (frequency of term): • >1x liquidation preference: 38% • Participating Preferred: 56% • Cumulative Dividends: 81% • Full Ratchet: 28% • Pay-to-Play: 23% Source: Dror Futter via Hale and Dorr 2003 VC Report #venturecapital #history #law #startups

One of the things that has been notable about the current venture market downturn is that deal terms have remained relatively stable - with the very notable and critical exception of valuation. This focus on valuation contrasts with the post-2001 tech bubble when punitive financing terms increased dramatically in 2002. The attached page is from a 2003 report from the then Hale and Dorr law firm. It reports the following in 2002: ➡ Over 30% of deals had liquidation multiples ➡ A majority of deals had participating preferred ➡ A majority of deals had accruing dividends ➡ Full ratchet anti-dilution protection was present in about 25% of deals In the current market, I do not think any of these deals terms are present in more than 10-15% of deals and while they have become somewhat more common than in 2021, not dramatically so. Candidly, not completely sure why.

New tech-focused investment bank alert! Three former Qatalyst Partners bankers have formed a new investment banking boutique called AXOM Partners, which will focus on advising technology companies on mergers and acquisitions (M&A). All details exclusively in my story.

📲A quick guide to the ins and outs of what founders need to know about the M&A process from a16z https://lnkd.in/eN6z4DCP

Great article on how M&A Advisors are the glue in business sale transactions with Private Equity.

Deal in Focus: Main Capital Partners exits Assessio to Pollen Street Capital The transaction sees the sell-side GP return its investment “multiple times” over, Main partner Wessel Ploegmakers tells Real Deals #RealDeals #PrivateEquity #Exit #BusinessServices

M&A deal activity rose five to 10% year-over-year in Q1, despite falling short of Q4 2023 totals, according to new data released by PitchBook. Deal multiples have remained stable, meanwhile – “a sign that the valuation reset may be complete, and have room to move higher to catch up with elevated prices of public companies,” said the market research firm. Global M&A had declined for two years straight heading into 2024. According to PitchBook, M&A has almost always bounced back from consecutive annual declines, and researchers at the company do not think this year will be any exception. Cody Crook, managing director of Hunt Scanlon Ventures, unpacks what it all means for human capital M&A activity. Read more >> https://lnkd.in/eHa6wqMw

Many founders and owners internally discount their progress and readiness to sell. If you have a dream to sell or be acquired, seek qualified counsel for an objective opinion—just don’t assume your company will never be of interest to potential investors. #M&A #BusinessAdvice #SellingaBusiness --- 👋 Hi, I'm Shane! The team and I at Allegiance Capital are the trusted advisors for business owners looking to run, scale, and (when the time's right) sell their business with confidence.