How to Tell if a SPAC Deal Price Is Fair
How do analysts determine if a SPAC deal price is fair? Ryan McGuire breaks down the valuation process, from income and market approaches to DCF models, explaining how fairness opinions assess whether shareholders receive appropriate value.
Guest: Ryan McGuire: https://www.linkedin.com/in/ryanquinnmaguire/
Let’s Connect on LinkedIn:
👉 Michael J. Blankenship - https://www.linkedin.com/in/mikeblankenship/
👉 Joshua Bruce Wilson - https://www.linkedin.com/in/joshuabrucewilson/
To Contact Us or Collaborate:
🎙️ https://www.TheSPACPodcast.com/contact/
Disclaimer: Michael J. Blankenship is a licensed attorney and partner at Winston Taylor. Joshua Wilson is a licensed Florida real estate broker and holds FINRA Series 79 and Series 63 licensure. The content of this podcast is for informational and educational purposes only and should not be considered legal, financial, or compliance advice. All views and opinions expressed by the hosts and guests are their own and do not necessarily reflect the policies or positions of any regulatory agency, law firm, organization, or employer. Listeners should consult their own legal counsel, compliance teams, or financial advisors to ensure adherence to applicable regulations, including SEC, FINRA, and other industry-specific requirements. This podcast does not constitute a solicitation or recommendation for any financial products or services.
Let's Connect on LinkedIn:
https://www.linkedin.com/in/mikeblankenship/ https://www.linkedin.com/in/joshuabrucewilson/
To Contact Us, Please Visit:
Michael Blankenship:
And how do you figure out if the SPAC deal price is fair to shareholders?
Ryan McGuire:
We approach it like we would any other valuation. Generally, there are three main approaches: the income approach, the market approach, and the asset approach.
In this case, we typically look at the income and market approaches specifically. We’ll analyze a discounted cash flow model, scrutinize the projections to make sure they hold up, and then look at the implied returns that shareholders would receive given the risk profile.
Director of Valuations
Ryan leads Intelek’s North American valuation practice with deep expertise across a range of technical and high-growth segments. Based in Denver, Colorado, he brings nearly a decade of business valuation experience, with a particular focus on pre-IPO and venture-backed companies.
Ryan has delivered hundreds of valuations for clients across technology, life sciences, SaaS, fintech, and consumer sectors. His core areas of expertise include ASC 820 portfolio valuation for investment funds, IRC §409A valuations for startups and scale-ups, and valuations for gift and estate tax purposes across a wide spectrum of ownership structures and industries. Ryan also has extensive experience with ASC 805 purchase price allocations, M&A strategy support, and complex capital structure modeling.
Prior to joining Intelek, Ryan was a Manager at Frank, Rimerman + Co., where he helped shape the firm’s venture valuation offering and led training and technical development initiatives across the team.
Ryan is a Certified Public Accountant (CPA) and holds the Accredited in Business Valuation (ABV) credential.” He holds dual degrees in Accounting and Finance from Wittenberg University.
When he’s not knee-deep in cap tables or waterfall models, you’ll find him enjoying Colorado’s great outdoors or lending his time to nonprofit and philanthropic causes.