The SPAC (special purpose acquisition company) market has undergone a transformation over the last few years. SPAC IPOs make up an ever-increasing chunk of the overall US IPO market every year. SPACs have grown from a shunned fundraising vehicle to a sophisticated financing tool that now attracts billions of dollars in investment, sophisticated market players and advisers, and results in billion-dollar acquisitions.
Recent COVID-19 driven market volatility and turmoil has grounded numerous traditional IPO plans, but is proving beneficial to SPACs. SPACs have been touted as a safe asset class because they hold their IPO-raised funds in trust prior to entering into an investor-approved acquisition and allow the investors to redeem invested funds.
Like other sophisticated finance and acquisition vehicles, SPACs face many hurdles as they go through the IPO and the subsequent business combination. However, with some smart planning and the help of the right advisors, SPACs can take advantage of several insurance options that can help them achieve their goals while minimizing risk.
Woodruff Sawyer, a market leader for placing IPO Directors and Officers (D&O) insurance, has a dedicated SPAC IPO practice with an experienced team. We are also a nationally recognized leader when it comes to Representations and Warranties (RWI) insurance, a critical element of the SPAC M&A process.
How We Can Help
Our experts can lead you through the complexities of your exposures, with services in:
- Directors & Officers coverage for your management team before and after the IPO
- M&A Representations & Warranties Insurance for your business combination
- Risk management and claims support at all times
- Creative company and deal-specific solutions, including:
- Errors & Omissions Coverage
- Cyber Liability
- Tax Liability
- Contingent Liability
To learn more about our brokerage and consulting services for SPACs, please contact Yelena Dunaevsky, Esq. at email@example.com.
Information and Features
Read our blog posts and publications, such as our Guide to Insurance for SPACs, for expert insights and perspective on insurance and risk management specific to SPACs:
Insights and Advice for SPACs – Woodruff Sawyer blogs and eguide
Why More SPACs Could Lead to More Litigation (and How to Prepare) – Woodruff Sawyer featured insight.
“Why SPACs Are Turning To Reps And Warranties Insurance” – feature article in Law360
“Developments in the Special Purpose Acquisition Company (SPAC) Market” – feature article in Business Law Today
Insights for Directors and Officers – D&O Notebook blog series
Insights related to Mergers & Acquisitions – M&A Notebook blog series