The SPAC Podcast: Special Purpose Acquisition Company

How to Tell if a SPAC Deal Price Is Fair

β€’ Joshua Wilson

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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/

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πŸ‘‰ Michael J. Blankenship - https://www.linkedin.com/in/mikeblankenship/
πŸ‘‰ Joshua Bruce Wilson - https://www.linkedin.com/in/joshuabrucewilson/
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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/ 

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https://www.TheSPACPodcast.com/contact/

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.