Louis Lehot Quoted in Crunchbase Discussing SPACs Targeting Young Companies

Partner Louis Lehot was quoted in a Crunchbase article, “Why are SPAC targets so Young?” The article looks at the reasons companies that go public via the SPAC route are more frequently young companies, as well as the benefits and risks of going this route instead of a traditional IPO.

“The great advantage of a SPAC IPO more than anything else is the ability to market your public listing based on its three-year forward revenue and forecasts, whereas a traditional IPO has to only look backward,” said Lehot. “So for newer companies that have a shorter history of revenue or are pre-revenue, a SPAC is going to be an easier path than an IPO. It’s also a riskier path and a path with a future trading market with an overhang of so much common stock people are trying to sell.”