November 9, 2020 | less than a minute read

Fallen Angel Reverse Merger or SPAC Merger: How do you decide?

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Jeremy D. Glaser

Member / Co-Chair, Venture Capital ＆ Emerging Companies Practice

Get in touch

Jeremy D. Glaser

Member / Co-Chair, Venture Capital ＆ Emerging Companies Practice

I have helped clients successfully achieve reverse mergers with fallen angel publicly-traded operating companies and with Special Purpose Acquisition Corporations (SPACs). There are advantages and disadvantages to both. This chart is helpful in framing the issues. I am happy to discuss these two alternatives with you.

This chart is intended to compare and contrast in summary form some of the considerations for a private company considering merging into an existing public operating company in a reverse merger or entering into a business combination with a special purpose acquisition company (“SPAC”). In particular, reverse mergers into operating companies with failed clinical programs have become common for private life sciences companies as an alternative to undertaking traditional IPOs.