Public Relations Tips for SPACs
Traditional IPOs have a relatively long time frame compared to Special Purpose Acquisition Companies (SPACs), which means they need an entirely different set of strategies and tactics for promotion and PR. In fact, the communications process for SPACs is highly regulated as well, which means most management teams behind SPACs have to work with a PR agency that’s already familiar with the entire process, including the large scale transactions, funding rounds, recapitalizations, and IPOs, to get the most benefits and capital for their companies.
That way, with the help of the agency, the SPAC will be able to tell the best story about the transaction to the potential investors. And the company will then be able to go into the market with a strong story that’s further supported and strengthened by significant media coverage and buzz from the press.
The first great marketing opportunity for a SPAC is the announcement of the transaction. The management team has to be well prepared to handle all of the publicity that’s going to arrive after that announcement.
The team should always present a confident, consistent, and cohesive message to the public and the media, and make sure all the key messages are communicated to encourage investors, gain their trust as well as interest.
Although the lifetime of a SPAC is between three to five months, the actual time that the team has to get everything in place is just a few short weeks, which is why it’s essential that the management team understands that timeline and uses it wisely to work with a PR agency on a media strategy.
Between developing the key messages and talking points, establishing the communications materials for different departments, gathering and creating promotional materials, there is not a lot of time before the announcement. And once the SPAC is in the public’s eye, the team conducts interviews, while the PR agency issues press releases, schedules those interviews, and works on updating and adjusting the campaign according to the feedback from potential investors.
The goal of the entire marketing campaign of a SPAC is for the management team and the PR agency to clearly communicate the great opportunity that’s in the company’s future to the investors, who are the target audience. This means that not only should all of the media coverage drive general buzz around the SPAC, but it should also give the investors a lot of confidence in their investment.
With this in mind, teams behind SPACs should carefully consider the types of media outlets they’ll be communicating with because they have to be able to tell the story in an insightful manner. For example, since financial media outlets are key, they’re going to be able to tell the financial part of the story, but with a good understanding of the industry by the management team, they’ll be able to give those outlets more in-depth information.