As part of our firm's digital white paper, "Outlook: U.S. Health Care 2021", my colleagues Ari Edelman, Sung Park and I authored a piece focusing on the SPAC market, in which we discuss the need to conduct robust regulatory due diligence when utilizing a SPAC to go public.
While the article, "Attack of the SPAC: Success of alternative IPO method hinges on due diligence," focuses on the due diligence process (and potential pitfalls) in a SPAC transaction, the importance of the regulatory due diligence process in any deal cannot be overstated.
This is particularly true in the health care and life sciences sector, where everything from promotional practices; FDA regulatory compliance concerns (including recalls and adverse event reports) and enforcement; and licensing requirements can easily impact the financial aspects of a transaction, or the ability for a deal to close on time, if at all.
I hope you consider giving our article a read to learn more about how SPACs are changing the life sciences industry and pitfalls to avoid when conducting diligence during the SPAC acquisition, and other transactions in this sector.