Business consulting services
Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle.
Business process solutions
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
Business risk services
The relationship between a company and its auditor has changed. Organisations must understand and manage risk and seek an appropriate balance between risk and opportunities.
As organisations become increasingly dependent on digital technology, the opportunities for cyber criminals continue to grow.
Forensic and investigation services
At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
Mergers and acquisitions
Globalisation and company growth ambitions are driving an increase in M&A activity worldwide. We work with entrepreneurial businesses in the mid-market to help them assess the true commercial potential of their planned acquisition and understand how the purchase might serve their longer- term strategic goals.
Recovery and reorganisation
Workable solutions to maximise your value and deliver sustainable recovery
Transactional advisory services
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
The International Financial Reporting Standards (IFRS) are a set of global accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of public company financial statements. At Grant Thornton, our IFRS advisers can help you navigate the complexity of financial reporting from IFRS 1 to IFRS 17 and IAS 1 to IAS 41.
Audit quality monitoring
Having a robust process of quality control is one of the most effective ways to guarantee we deliver high-quality services to our clients.
Global audit technology
We apply our global audit methodology through an integrated set of software tools known as the Voyager suite.
Corporate and business tax
Our trusted teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
Direct international tax
Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
Global mobility services
Through our global organisation of member firms, we support both companies and individuals, providing insightful solutions to minimise the tax burden for both parties.
Indirect international tax
Using our finely tuned local knowledge, teams from our global organisation of member firms help you understand and comply with often complex and time-consuming regulations.
Innovation and investment incentives
Dynamic businesses must continually innovate to maintain competitiveness, evolve and grow. Valuable tax reliefs are available to support innovative activities, irrespective of your tax profile.
Private client services
Our solutions include dealing with emigration and tax mitigation on the income and capital growth of overseas assets.
The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public
Tax policies are constantly evolving and there are a number of complex changes on the horizon that could significantly affect your business.
Outsourcing Changes to the Outsourcing legislation, specifically when offshoringSignificant changes to the dynamic of the financial services sector in recent years have shifted the paradigms in how we work. The increased digitisation of the workforce, changes in business models, globalisation, and remote working capabilities have led to a new approach to the delivery of services.
Asset management Inflation and tax planningThe recent onset of rapid inflation is an unwelcome development that is having a widespread impact on US businesses and tax planning.
What is a SPAC?
SPACs provide an alternative way for private companies to go public, usually without the long process associated with an Initial Public Offering (IPO). A SPAC listing typically involves raising capital from public capital through an IPO for the purpose of acquiring or merging with an existing company (usually a private company). SPACs typically have no commercial operations before acquiring a private company.
While rules may vary by jurisdiction, on listing a substantial part of the gross IPO funds are usually placed in an escrow account and are used to acquire an existing company. Once a target is identified, a simple majority of independent directors and shareholders is required in support of the transaction.
SPAC transactions often involve seller shareholders retaining some interest in the combined entity. Once the acquisition is complete, the combined entity is a publicly traded entity and is governed by a board of directors which often include the SPAC sponsors (or their representatives), and sellers (or their representatives).
The funds are returned if no acquisition is made in two years from listing date.
What are the regulatory requirements for a SPAC?
Companies planning to raise capital through a SPAC transaction should plan their readiness for IPO in advance to ensure they meet regulatory requirements set by the regulators (such as the SEC). Regulators are likely to review the SPAC filings with the same level of scrutiny as it would a traditional IPO. This may include examining the financial position and operating control; character and integrity of the incoming directors and management; compliance history; material licences, permits and approvals required to operate the business; and resolution of conflicts of interests.
Following its IPO, the SPAC’s will experience a significant increase in financial reporting requirements (eg SEC in the US), including filing periodic reports with the stock exchange. Therefore, private operating companies should design systems and processes to ensure that they meet their obligations under regulation once they become a ’listed entity’.
Financial reporting considerations for SPACs
SPAC transactions can give rise to unique financial reporting and accounting issues under International Financial Reporting Standards and US GAAP. Take a look at our publication on Financial reporting and accounting for Special Purpose Acquisition Companies (SPACs).
While a SPAC provides private companies with a new avenue to access public markets and benefit from having wider access to capital, liquidity and experienced managers, it also entails greater regulatory supervision. This includes regular audits and increased financial reporting requirements, internal controls assessments, and measures to make sure the organisation has processes in place to meet public company reporting timelines.
Companies should also focus on setting up systems and processes so that they are prepared and ready to function as a public company. Companies which plan their IPO readiness will be better positioned to complete a capital raise through SPAC successfully.
If you would like to discuss a Special Purpose Acquisition Company or the key accounting considerations in SPAC transactions then please contact Chetan Hans, Partner – financial reporting advisory services, Grant Thornton Singapore.