What Makes an Ideal SPAC Target
In this episode of The SPAC Podcast, James outlines what makes the “ideal” SPAC target and why it’s often more about strategic fit and synergies than sector.
For James, public-company-ready management is the non-negotiable starting point. But beyond that, he describes scenarios where SPACs create unique value:
- A company like William Scotsman, with $120M EBITDA and a bolt-on acquisition opportunity that could only be executed via a SPAC.
- Consolidation plays, where multiple mid-sized companies can’t acquire each other directly, but a SPAC structure can bring them together.
The goal? To roll profitable businesses into a SPAC, pursue follow-on acquisitions, and unlock synergies that would otherwise be impossible.
Even if some owners are wary of SPACs from past experience, James argues that this type of structure remains one of the most powerful ways to combine businesses and capture value.
Connect with the Guest:
James – SPAC & Capital Markets Expert
LinkedIn: https://www.linkedin.com/in/james-graf-745191/
View all of their episodes here:
https://www.thespacpodcast.com/guests/james
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
Contact The SPAC Podcast:
https://www.thespacpodcast.com/contact/
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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/
👉 ...
Mike Blankenship:
Jim, when you’re looking at various targets, what is your ideal target?
James:
Good, public-company-ready management is always the prerequisite. But the ideal target is one where a SPAC enables a transaction that otherwise couldn’t happen.
A perfect example was William Scotsman, $120M of EBITDA, a large bolt-on acquisition with $50M of synergies, but no path to raise debt, go public, or bring in more private equity. The SPAC was the only structure that made it possible.
We also look for industries with multiple mid-sized players, say four companies with ~$150M EBITDA each. Two want to buy, two want to sell, but none are structured to merge directly. A SPAC provides the vehicle to roll them up and create a market leader.
Yes, some owners remain wary of SPACs from past experiences. But when there are clear synergies and identified targets, the SPAC can be the ideal way to combine businesses and unlock value.
James Graf
CEO
James Graf is CEO of Graf Global Corp., his eighth SPAC as CEO, CFO and/or active director since 2011. He also serves as Interim CFO of NKGen Biotech, his last SPAC target. Previous closed transactions include Global Eagle, Videocon d2h, Williams Scotsman, Target Hospitality, Velodyne Lidar, Crown LNG and NKGen.Prior to SPAC life, Jim was an investment banker for two decades, including roles as President of Deutsche Bank’s investment bank in Hong Kong and managing director at Merrill Lynch. He later founded enterprise software company Praedea Solutions and served as a financial consultant to MGM Studios.