Solutions for Special Purpose Acquisition Companies (SPACs)

Special Purpose Acquisition Companies — or SPACs — have emerged as an attractive alternative for raising capital. There are several reasons for the growth of SPACs — and Aon is uniquely positioned to support sponsors and operators throughout the SPAC lifecycle.

A Dedicated SPAC D&O Taskforce

Aon’s Financial Services Group (FSG) has long had a strong presence in the new ventures and acquisitions field, helping clients navigate the challenging process of building a new business. The Aon SPAC Taskforce consists of cross-functional leaders with solid experience in management liability to support organizations considering/involved in SPACs, pre-IPO, post-IPO and other new venture activity.

Carrier Selection
Fundamentally, selecting consistent insurers that have not only the ability to pay, but also the willingness to pay, is a core challenge of D&O insurance. Aon’s tools, such as our carrier behavior matrix and carrier market share analytics, help us provide “fact, not feeling” with SPAC-specific information to inform this critical decision.

Legal & Claims Team
Our team of 39 attorneys, focused exclusively on management liability insurance, are integrated into the broking team and involved in both pre-placement discussions with clients and carriers, as well as post-claim negotiation. In 2019, Aon’s FSG business recovered an average of approximately $700 million in claims payments on behalf of our clients in the past five years.

Boardroom-Ready Analytics
Benchmarking provides the foundation for evaluating program metrics, and Aon’s benchmarking capabilities are second to none. Further, Aon’s significant SPAC market share and dedicated Data & Analytics team allows us to customize our SPAC benchmarking for your bespoke needs.

The Aon SPAC Advantage
Aon has worked with leading SPAC insurers to identify pre-negotiated, SPAC-specific coverage and structure terms that are critical to a successful SPAC offering. Aon’s SPAC Taskforce will ensure that coverage is negotiated to allow maximum flexibility and breadth of coverage to protect your interests.

Other Specialty Solutions

In addition to our D&O experience, Aon provides myriad solutions to mitigate client risk and exposure, protect M&A activity and uncover opportunities, including:

The Biotechnology Innovation Organization (“BIO”) and Aon have collaborated to provide comprehensive cyber and management liability insurance programs to BIO organizations.
Aon helps clients protect and create enterprise value for their largest asset holdings in today’s business world – their intellectual property.
Industry specialists such as Radford (life science & technology) and McLagan (financial services) provide consulting services such as executive and director compensation, employee rewards, career strategies, equity strategy and plan design, and sales compensation and effectiveness.
A full suite of products (including reps & warranties, tax and litigation buyout) to explore strategic alternatives alongside the public offering efforts, or to help mitigate obstacles to a successful offering.

Client Alert: Special Purpose Acquisitions

Through September 2020, there have been over 100 Special Purpose Acquisition Company (SPAC) offerings year-to-date, a doubling of both nominal offerings and offering size, and a tripling of capital raised year over year. Read our Client Alert for considerations for SPAC organizers with respect to management liability exposures and solutions to address exposures. .

On-Demand SPAC Webinar

Companies are considering whether they should consider a SPAC business combination as a possible alternative to a traditional IPO. Access a replay of a September 2020 webinar hosted by Aon leaders joined by a panel of legal and financial experts.

 

Contact Us

For more information, please reach out to a managing director on our SPAC Taskforce.

National

Kristin Kraeger
Financial Services Group
Commercial Risk Solutions | Aon
kristin.kraeger1@aon.com

East Region

Uri Dallal
Financial Services Group
Commercial Risk Solutions | Aon
uri.dallal@aon.com

Central Region

Ross Wheeler
Financial Services Group
Commercial Risk Solutions | Aon
ross.wheeler@aon.com

West Region

Tim Fletcher
Financial Services Group
Commercial Risk Solutions | Aon
timothy.fletcher@aon.com