Red Flags in SPAC Valuations
What signals should investors watch for in SPAC valuations? Ryan McGuire highlights the key red flags, from difficulty attracting PIPE investors to high redemption rates, that can point to declining sentiment or questionable deal terms.
Guest: Ryan McGuire: https://www.linkedin.com/in/ryanquinnmaguire/
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Let’s Connect on LinkedIn:
👉 Michael J. Blankenship - https://www.linkedin.com/in/mikeblankenship/
👉 Joshua Bruce Wilson - https://www.linkedin.com/in/joshuabrucewilson/
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The views, opinions, and statements expressed by the guest are solely their own and do not necessarily reflect the views of The SPAC Podcast, its hosts, or affiliated organizations. This content is for informational purposes only and should not be construed as investment, legal, tax, or accounting advice.
Michael J. Blankenship is a licensed attorney and is a partner at Winston & Strawn LLP. Joshua Wilson is a licensed Florida real estate broker and holds FINRA Series 79 and Series 63 licensure. The content of this podcast is intended for informational and educational purposes only and should not be interpreted as legal, financial, or compliance advice. The views and opinions expressed by the hosts and guests are their own and do not necessarily reflect the official policies or positions of any regulatory agency, law firm, employer, or organization.
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Let’s Connect on LinkedIn:
👉 Michael J. Blankenship - https://www.linkedin.com/in/mikeblankenship/
👉 ...
Michael Blankenship:
You’ve looked at a lot of SPAC transactions. What are some common warning signs you look for in SPAC valuations?
Ryan McGuire:
One would be exactly what we just discussed, difficulty attracting PIPE investments or having to offer excessive sweeteners to get them in.
Another warning sign is high redemption rates. As the SPAC nears that 18- to 24-month window, if everyone is redeeming, that could be a signal that investor sentiment is turning stale or even negative as the transaction moves along.
These aren’t the only indicators, but they’re important factors we consider as we approach the De-SPAC process.
Ryan Maguire
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.