Typical targets are Italian companies with a strong international vocation that require additional
resources to continue to support their growth and development.
The corporate structure of Space3 S.p.A., being incorporated under Italian law, allows to carry out the
"business combination" and hence list the shares of the target company, with a leaner
procedure, in a shortened timeframe, and with less uncertainty than an ordinary IPO process.
Advantages for the target company
Compared to a traditional IPO process, the business combination with a SPAC allows a company to achieve
the listing of its shares in a shortened timeframe and with lower execution risk: a standard IPO process
requires usually 6-9 months during which the entrepreneur and the management are almost totally
distracted from the company’s operations to structure the deal, work on documentation, and
interact with investors.
In such an extended time period, stock market conditions may evolve adversely making the listing more
complex, less practicable or no longer economically interesting. In case of a combination with a SPAC,
most of the listing process efforts and related costs are born in advance by the SPAC, while the terms
and conditions of the deal are established beforehand. Compared to a private equity deal, the business
combination with a SPAC is far less invasive in terms of corporate governance for the entrepreneur.
Few private equity funds undertake minority investment and generally require veto rights and protection
of their ability to exit the investment. By way of a business combination with a SPAC, the target
company can enlarge its ownership structure including institutional investors that obtain liquidity for
their holdings through the listing of the target shares.
