Alternative Initial Public Offering Models

1 - Cover [Seite 1]
2 - Acknowledgements [Seite 6]
3 - Summary of Contents [Seite 8]
4 - Contents [Seite 10]
5 - List of Tables [Seite 14]
6 - List of Figures [Seite 15]
7 - List of Abbreviations [Seite 16]
8 - Introduction?????????????????????????????????????? [Seite 22]
8.1 - Outline [Seite 22]
8.2 - Research Topic and Aim [Seite 22]
8.3 - Course of Study [Seite 23]
9 - Chapter 1: Background Information on SPAC Shells?????????????????????????????????????????????????????????????????????????????????????????????????????????????? [Seite 24]
9.1 - I. Historical Development of SPACs in US and European Capital Markets [Seite 24]
9.2 - II. Fraudulent Blank Cheque Company Listings on the Penny Stock Market [Seite 25]
9.3 - III. The Passing of Corrective Legislation [Seite 26]
9.4 - IV. The Emergence of SEC Rule 419 [Seite 27]
9.5 - V. The Emergence of 1st Generation SPACs [Seite 28]
9.6 - VI. 2nd and 3rd Generation SPACs and the Leap into European Capital Markets [Seite 30]
10 - Chapter 2: SPAC Anatomy and Transactional Practice?????????????????????????????????????????????????????????????????????????????????????????????????????????????????? [Seite 32]
10.1 - I. Stakeholders [Seite 32]
10.1.1 - 1. SPAC Founders and Management Team [Seite 32]
10.1.2 - 2. SPAC Shareholders [Seite 33]
10.1.3 - 3. Owners and Management of the Target Corporation [Seite 33]
10.2 - II. Corporate Governance Structures [Seite 33]
10.2.1 - 1. Stipulated Time Frame [Seite 34]
10.2.2 - 2. IPO Proceeds Held in Trust [Seite 35]
10.2.3 - 3. Shareholder Vote and Right to Opt Out [Seite 35]
10.2.4 - 4. Conversion Threshold Through Share Redemption [Seite 36]
10.2.5 - 5. Managerial Compensation and Incentive Scheme vs. "At Risk Capital" [Seite 36]
10.2.6 - 6. Minimum Fair Market Value Multiple [Seite 38]
10.2.7 - 7. Interim Result [Seite 39]
10.3 - III. SPAC Transaction: A Twofold Double Trust Dilemma [Seite 41]
10.3.1 - 1. Moral Hazard between SPAC Shareholders and Managers [Seite 42]
10.3.2 - 2. Moral Hazard between Target Firm and SPAC Managers [Seite 44]
10.3.2.1 - a) Economic Benefits [Seite 44]
10.3.2.2 - b) Economic Risk Factors [Seite 46]
10.3.3 - 3. Interim Result [Seite 48]
10.4 - IV. Case Study: Hicks Acquisition vs. Graham Packaging [Seite 48]
10.4.1 - 1. Target Description: Graham Packaging I, Inc [Seite 49]
10.4.2 - 2. Deal Terms [Seite 49]
10.4.3 - 3. Investment Rationale [Seite 50]
10.4.3.1 - a) Premium Asset in the Packing Industry [Seite 50]
10.4.3.2 - b) New World-Class Senior Management Installed in 2006 [Seite 50]
10.4.3.3 - c) Significant Upside Potential to New Investors [Seite 50]
10.4.4 - 4. Company Overview and Transaction Structure [Seite 50]
10.4.5 - 5. Interim Result [Seite 51]
10.5 - V. Summary [Seite 51]
11 - Chapter 3: SPACs and the Applicable German Law?????????????????????????????????????????????????????????????????????????????????????????????????????????? [Seite 54]
11.1 - I. Going Public with a SPAC - Capital Markets Law [Seite 55]
11.1.1 - 1. Prospectus Requirement [Seite 55]
11.1.1.1 - a) SPAC Units Consisting of Shares andWarrants [Seite 56]
11.1.1.2 - b) Public Offer [Seite 57]
11.1.1.3 - c) Regulated Domestic Market [Seite 58]
11.1.1.4 - d) Interim Result [Seite 58]
11.1.2 - 2. Prospectus Content [Seite 58]
11.1.2.1 - a) SPAC-specific Challenges [Seite 59]
11.1.2.2 - b) Interim Result [Seite 61]
11.1.3 - 3. Accessing Alternative Capital Market Segments [Seite 61]
11.1.3.1 - a) Admission Through the OTC Market [Seite 61]
11.1.3.2 - b) Admission Through the Regulated Market [Seite 62]
11.1.3.3 - c) Interim Result [Seite 63]
11.1.4 - 4. Interim Conclusion: Capital Markets Law [Seite 64]
11.2 - II. Corporate Law Aspects Pertaining to SPACs [Seite 64]
11.2.1 - 1. Aspect 1: SPAC Share Subscriptions and Trust Account [Seite 64]
11.2.1.1 - a) SPAC-specific Challenges [Seite 65]
11.2.1.2 - b) Interim Result [Seite 66]
11.2.2 - 2. Aspect 2: Differing Share Classes for Sponsors and Investors [Seite 66]
11.2.2.1 - a) SPAC-specific Challenges [Seite 67]
11.2.2.2 - b) Interim Result [Seite 69]
11.2.3 - 3. Aspect 3: SPAC Merger Transaction and Shareholder Approval [Seite 70]
11.2.3.1 - a) SPAC-specific Challenges [Seite 70]
11.2.3.2 - b) Interim Result [Seite 74]
11.2.4 - 4. Aspect 4: Opt Out and Share Redemptions [Seite 74]
11.2.4.1 - a) SPAC-specific Challenges [Seite 74]
11.2.4.2 - b) Interim Result [Seite 76]
11.2.5 - 5. Aspect 5: Acquisition or Liquidation [Seite 76]
11.2.5.1 - a) SPAC-specific Challenges [Seite 76]
11.2.5.2 - b) Interim Result [Seite 78]
11.2.6 - 6. Aspect 6: Naked Warrants [Seite 78]
11.2.6.1 - a) SPAC-specific Challenges [Seite 78]
11.2.6.2 - b) Interim Result [Seite 79]
11.2.7 - 7. Interim Conclusion: Corporate Law [Seite 80]
11.3 - III. SPACs in View of the BGH Judgments on Shell Utilisations [Seite 81]
11.3.1 - 1. Shell Utilisations in Germany [Seite 81]
11.3.1.1 - a) Off-the-shelf Shell versus "Recycled" Shell [Seite 81]
11.3.1.2 - b) Shell Utilisation versus Business Restructuring [Seite 82]
11.3.2 - 2. BGH Judgments on Shell Utilisations [Seite 83]
11.3.2.1 - a) 2002/2003: Doctrine of "Economic Re-incorporation" [Seite 84]
11.3.2.2 - b) 2010: Narrower Applicability of an "Economic Re-incorporation" [Seite 84]
11.3.2.3 - c) 2012: Dismissing Perpetual Liability? [Seite 86]
11.3.2.4 - d) Attempting to Classify SPACs: Empty or not? [Seite 87]
11.3.3 - 3. Legal Consequences for SPAC Transactions [Seite 90]
11.3.3.1 - a) Disclosure and Register Court Controls [Seite 90]
11.3.3.2 - b) Adverse Balance Liability [Seite 92]
11.3.3.3 - c) Action Liability [Seite 93]
11.3.4 - 4. Interim Result and Critique on the BGH Judgments [Seite 93]
11.4 - IV. Summary [Seite 95]
12 - Chapter 4: Statistical Analysis of SPACs?????????????????????????????????????????????????????????????????????????????????????????????? [Seite 98]
12.1 - I. SPAC IPO and Execution Statistics [Seite 98]
12.2 - II. SPAC Excess Return Patterns: Shares and Warrants [Seite 100]
12.2.1 - 1. The CAPM Approach [Seite 100]
12.2.1.1 - a) A Cursory Note on the Mathematical Framework [Seite 101]
12.2.1.2 - b) A Cursory Note on Market Efficiency [Seite 102]
12.2.1.3 - c) A Cursory Note on the Estimation of R? and Rm [Seite 103]
12.2.2 - 2. Results: Excess Returns on SPAC Shares and Warrants [Seite 103]
12.2.2.1 - a) The SPAC Dilution Hurdle [Seite 105]
12.2.2.2 - b) Sensitivity Analysis: Addressing the SPAC Dilution Hurdle [Seite 106]
12.2.3 - 3. Interim Results [Seite 108]
12.3 - III. Comparative Single Factor Portfolio Regression [Seite 108]
12.3.1 - 1. Determining the Beta Equation [Seite 108]
12.3.1.1 - a) Automatic Rebalancing of Portfolios [Seite 108]
12.3.1.2 - b) Additional Considerations [Seite 109]
12.3.2 - 2. Comparative Regressional Outputs and Interpretation thereof [Seite 109]
12.3.2.1 - a) Significance of Beta and Risk-adjusted Performance [Seite 110]
12.3.2.2 - b) Significance of Alpha [Seite 111]
12.3.2.3 - c) Coefficient of Determination (R2) [Seite 112]
12.3.2.4 - d) Comment on the Standard Error of Estimate [Seite 112]
12.3.3 - 3. Interim Results [Seite 112]
12.4 - IV. Analysing the Trading Behaviour of SPACs [Seite 113]
12.4.1 - 1. Fama-French Four Factor Regressional Approach [Seite 114]
12.4.1.1 - a) Market Weighted vs. Equal Weighted Portfolio Regressions [Seite 114]
12.4.1.2 - b) Interim Results [Seite 116]
12.4.2 - 2. Trust Account Statistics [Seite 116]
12.5 - V. Pre-IPO SPAC Statistics [Seite 118]
12.5.1 - 1. Comparative IPO Time and Cost Structure [Seite 118]
12.5.2 - 2. Pre-IPO Target Focus of SPACs [Seite 119]
12.6 - VI. Summary [Seite 120]
13 - Conclusion and Outlook?????????????????????????????????????????????????????????? [Seite 122]
14 - Bibliography?????????????????????????????????????? [Seite 128]
15 - Index???????????????????????? [Seite 132]