Investment Strategies

Space3 S.p.A. intends to consummate a business combination with an Italian medium-sized privately held company that is an example of Italian industrial excellence and it is interested in opening its capital to institutional investors by listing its shares

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.