How to Increase IPO Success Rates: Five Winning De-SPAC Strategies


ÈÕÆÚ£º2025-06-12

AGBA Perspective,June 12, 2025 09:09

Following the frenzy of 2020¡¯s "SPAC Boom Year" and a period of pandemic-driven recalibration, Special Purpose Acquisition Company (SPAC) listings have stabilized and regained momentum. The market has been rigorously vetted, with successful mergers providing valuable insights. So how can De-SPAC transactions (the process where a listed SPAC identifies a target company and completes the merger) achieve higher success rates? 

Examining past successes, renowned international companies like Skillsoft, Lucid, and WeWork¡ªall of which successfully merged and listed via SPACs¡ªshared clear business plans and long-term investors. Their triumphs benefited from post-pandemic market recovery, the ESG surge, long-cultivated brand equity, and diversified consumer markets. 

In capital markets, identifying and synthesizing successful SPAC listing experiences is critical to helping companies navigate De-SPAC effectively. **Crafting a compelling growth narrative** is paramount: Companies undergoing De-SPAC need a credible story demonstrating how their growth aligns with broader market trends. 

Crafting a Compelling Growth Narrative
EdTech exemplifies this strategy. As organizations embraced digital learning during the pandemic, Skillsoft leveraged a powerful business transformation story amplified by favorable market tailwinds. Churchill II merged Skillsoft with Global Knowledge, creating an industry leader positioned to dominate the expanding digital learning market. This enhanced profitability and created shareholder value while mitigating common criticisms of pre-revenue SPAC targets. 

The CEO as Chief Storyteller 
A strong narrative requires an authoritative voice. Nextdoor¡¯s Sarah Friar and SoFi¡¯s Anthony Noto championed their companies from merger announcement to closing. Friar challenged the "growth-at-all-costs" mentality on Bloomberg TV and engaged media like *Yahoo! Finance* and the *Financial Times*, cementing investor confidence. Noto similarly leveraged CNBC, Reuters, and Quartz, earning public endorsements from figures like Jim Cramer. 

Securing Third-Party Validation 
Successful SPACs mobilize investor advocacy. WeWork showcased SPAC sponsors and PIPE investors in its materials, while investors like Barry Sternlicht publicly endorsed the company through press releases and media appearances. The SPAC¡¯s lead sponsor Vivek appeared on CNBC at listing, and a strategic investment from Cushman & Wakefield further validated the business model. 

Prioritizing Shareholder Voting
Securing quorum requires proactive retail investor outreach. During Lucid¡¯s merger with Churchill IV¡ªwhere retail investors dominated the shareholder base¡ªtargeted social media communications in the final hours provided critical voting instructions, ultimately securing deal approval. 

Treating Listing Day as a Brand Moment 
Successful companies transform listing day into experiential brand events. Lucid and WeWork hosted NYSE bell-ringing ceremonies with employee recognition programs, while Lucid additionally showcased vehicles across New York City. 

Ultimately, strategic communication anchored in a credible narrative and precise execution enables companies to successfully transition into public markets. 

AGBA Perspective continues to deliver cutting-edge SPAC and U.S. market insights. With over a decade of SPAC expertise, we accelerate main board listings through optimized merger frameworks. Stay connected! 

Adapted from Daniel Founabou¡¯s analysis in IR Magazine. Source attribution required for redistribution.