Through the design of innovative financial products, EarlyBirdCapital's investment banking department strives to bring new concepts to the market, creating opportunities and building wealth for clients.
One such innovative proprietary product is our trademarked Special Purpose Acquisition Company™, or “SPAC™”.
A SPAC™ is a publicly-traded vehicle that has been formed to facilitate a business combination, typically a merger, acquisition or asset sale, usually within a specified industry. The capital is raised through an initial public offering of securities.
The purpose of a SPAC™ is to provide an investment opportunity to our clients by leveraging the experience and expertise of each SPAC™ management team in identifying a business combination. Typically the members of the team have the skills and track record of acquiring or merging operating businesses and creating value. These acquisitions or mergers take place in the U.S., or in expanding economies such as China or Israel, or in a specified industry such as energy, health care, technology or specialty retailing. By combining these skills with access to the capital needed to fund a merger, acquisition or asset sale, the SPAC™ offers the financial flexibility, capital structure and management to attract a broad variety of target transactions and investment opportunities for our clients.
The unique structure of the SPAC™ investment created by the EarlyBirdCapital team has been adopted by a growing segment of the underwriting community and accounts for several billion dollars of capital formation.
A new generation of SPAC™ offerings was launched in August of 2003 with Millstream Acquisition Corp. Since that time EBC has been the recognized market leader in SPAC™initial public offerings as well as in consummated business combinations.