Privately held companies preparing for an initial public offering often undertake a public company readiness assessment and seek to identify the gaps that must be addressed prior to their becoming subject to the corporate governance and other rules applicable to public companies. Often, this assessment is conducted over a period of months and the IPO preparations may span many more months. However, given the intense interest in mergers with SPACs, many attractive private company "targets" may not have had the opportunity to undertake their readiness assessment. The public company readiness process may have to be compressed and often will be undertaken in parallel with the negotiation of the initial business combination agreement and the Securities and Exchange Commission's review of the proxy or proxy/prospectus.
This interactive chart aligns the principal elements of the public company readiness process with the de-SPAC process and is intended to serve as a reference for private companies considering the tasks ahead of them, which were recently the subject of comment by the Staff of the SEC's Office of Chief Accountant, as discussed in our prior post.
Visit us at mayerbrown.com
Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe - Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
© Copyright 2020. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.