The SPAC Podcast: Special Purpose Acquisition Company

SPAC Valuation: Why Getting It “Right” Is More Art Than Formula

Joshua Wilson

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Valuation is one of the most critical and misunderstood aspects of any SPAC transaction.

In this clip, Michael Blankenship and Delon Turner discuss why valuation is not a fixed formula, but a negotiated outcome that must balance regulatory requirements, market expectations, and long-term performance.

Delon explains that while exchanges set minimum thresholds, the real challenge is finding a valuation that can hold up under public market scrutiny. He emphasizes that success is less about hitting a specific number and more about ensuring the leadership team is prepared to operate as a public company.

The conversation highlights a key principle: valuation may get the deal done, but execution determines whether it holds.



Disclaimer: Michael J. Blankenship is a licensed attorney and 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 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 

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Michael Blankenship: Talk about valuation. For a business combination, how do you see that? 'cause sometimes valuations may be too high come out and you see the stock just plummet, so Yeah. Like how do you be smart about that? 

Delon Turner: I think it's more of an art than the science. That's the negotiation between the sponsorship group and the actual company.

And what you want to do, you want to have some type of continuity to where those conversations are leading to a true valuation that can be approved by the SEC. So from the New York Stock Exchange, I think there's a hundred million dollar minimum valuation and the NASDAQ is 50. So you want to find that sweet spot.

But the most important thing, I think, is more about the team that actually runs the firm from the founders to the CEOs and how they can lead the company into a NASDAQ or New York stock traded listing. Entity because there's a ton of scrutiny behind it. There's tons of regulations and guidelines, and that team has to be prepared and be able to take on those challenges of reporting and not only reporting, but perform.

So I think the valuation is something that you agree upon, but more so of a art, there's no, I would say sweet recipe for it is more of a gumbo and you just mix it up and make sure it's done correctly. And, you can pass that sniff test and you make it work. And it should be favorable for everyone, not only just for the sponsorship group, but for the entity that's being having a business combination as well.