SPAC Target Selection: Sectors, Suitability, and Pitfalls
In this episode of The SPAC Podcast, Patrick Sturgeon, Managing Partner at Brookline Capital Markets, discusses what types of companies are best suited for going public through a SPAC merger. He explains why fundamentally strong businesses with good products, growth potential, and solid operating margins make attractive public companies.
Patrick also highlights why certain asset-heavy sectors — such as banks, insurance companies, real estate, or asset-based businesses — may not be as well-suited to SPAC structures, where dilution from the sponsor promote could reduce value. His insights help clarify which companies align better with the SPAC model.
Connect with the Guest:
Patrick Sturgeon – Managing Partner, Brookline Capital Markets
Website: https://brooklinecapmkts.com/
LinkedIn: https://www.linkedin.com/in/patrickasturgeon/
View all of their episodes here:
https://www.thespacpodcast.com/guests/patrick-a-sturgeon/
Connect with the Hosts & The SPAC Podcast:
Michael Blankenship LinkedIn: https://www.linkedin.com/in/mikeblankenship/
Joshua Wilson LinkedIn: https://www.linkedin.com/in/joshuabrucewilson/
YouTube Channel: https://www.youtube.com/@Thespacpodcast
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Disclaimers:
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.
Listeners are encouraged to consult their own legal counsel, compliance professionals, or financial advisors to ensure adherence to applicable laws and regulations, including those enforced by the SEC, FINRA, and other regulatory bodies. This podcast does not constitute a solicitation, offer, or recommendation of any financial products, securities transactions, or legal services.
Let’s Connect on LinkedIn:
👉 Michael J. Blankenship - https://www.linkedin.com/in/mikeblankenship/
👉 ...
Michael: Are there certain types of companies that are particularly well suited to go public via SPAC? Any sectors, stages, or situations where the structure is more appealing?
Patrick Sturgeon: We get this question a lot, including directly from company boards and management teams: should we be public, and if so, should we consider a SPAC? A good company with strong fundamentals — good product, solid growth, and strong operating margins — makes a strong public candidate.
If we look at sectors less suited for SPACs, I’d flip the question. Certain businesses where value is derived primarily from book value or that are asset-heavy don’t always fit well. Examples include depository banks, insurance firms, real estate, or other asset-based businesses. In those cases, the dilution from the sponsor promote could make the economics less attractive compared to a traditional IPO or direct listing.