Getting Ready: The Most Critical Step Before a DESPAC Transaction
In this episode of The DESPAC Podcast Go Public Series, host Chaz Churchwell and SPAC attorney Michael Blankenship of Winston & Strawn take a deep look at the most important part of the DESPAC process: G – Getting Ready.
The discussion explains why internal readiness determines deal speed, valuation outcomes, and investor confidence. Michael breaks down the essential components that SPAC teams will examine during diligence and why companies must discover issues themselves before the SPAC does.
You will learn:
• Why internal self-audits protect valuation and timeline
• How to prepare financials, contracts, and cap tables for diligence
• Why public-company governance begins long before the transaction
• What it means to build an independent, credible board
• How to stress-test projections and avoid unrealistic growth forecasting
• Why disciplined projections are essential in today’s SPAC markets
• What companies must know about crypto treasuries and risk management
This episode gives private company leaders clear guidance on how to properly prepare for the DESPAC path and build credibility with investors and regulators.
Connect With the Guest:
Michael Blankenship, Winston & Strawn LLP
LinkedIn: https://www.linkedin.com/in/mikeblankenship
Connect With the Host & The DESPAC Podcast:
Chaz Churchwell LinkedIn: https://www.linkedin.com/in/chazchurchwell/
YouTube Channel: www.youtube.com/@thedespacpodcast
THE DESPAC PODCAST STANDARD LEGAL DISCLAIMER
The DESPAC Podcast is for informational purposes only. The views and opinions expressed by the host and guests are their own and do not represent the views of Smooth Stone Capital, its affiliates, or any sponsoring organization.
Nothing in this podcast should be interpreted as legal advice, investment advice, tax advice, or a recommendation to pursue or avoid any transaction. Discussions may reference SPACs, DESPAC transactions, securities regulations, or public-company readiness frameworks. These conversations are educational in nature and should not be relied upon when making financial or strategic decisions.
Listeners should consult qualified legal, financial, and tax professionals before acting on any information discussed in this podcast. Any examples or scenarios mentioned are illustrative and may not reflect current market conditions or regulatory requirements.
Participation by a guest does not constitute an endorsement of any company, strategy, product, or service. References to specific firms or individuals are for context only.
Smooth Stone Capital and the DESPAC Podcast disclaim all liability arising from the use of or reliance on the information presented.
Chaz Churchwell: So welcome back to the D SPAC podcast Go Public series. In our last video, we introduced the entire framework for going public through a D SPAC process. Today we're gonna dive into the most critical step. G getting ready. This is the foundational prep work for a private company getting ready before it even starts to talk to a SPAC team.
Michael, do me a favor. Tell me why the internal self-audit is so critical.
Mike Blankenship: Well, think of it like this. Chaz a spac will do a deep dive investigation into your company. We call it diligence. If you haven't already done your own, you risk having the spac find something you didn't know about that can either kill a deal.
Or dramatically lower your valuation. Getting ready means you're scrubbed your financials, your contacts, and your cap table, so there are no surprises.
Chaz Churchwell: Yeah, it's It's really gonna be all about prepping for the public spotlight, right?
Mike Blankenship: Absolutely. You need to build your board with independent directors and begin to think like a public company.
Your governance structure needs to be in place 'cause it signals maturity and professionalism. Without it, you'll be starting from scratch when the deal closes, which is not ideal.
Chaz Churchwell: And then there's another, actually another crucial point is gonna be stress testing, financial projections. So like we see so many D SPACs that have failed because their numbers were too optimistic.
I mean, let's face it, nobody wants to hear that their baby is ugly, right? So it's the idea of people over-inflating what their valuation should be.
Mike Blankenship: At the end of the day, it's about honesty and realism. The old way of projecting sky high growth to justify valuations just doesn't fly anymore. Uh, you need to align your projections to achievable milestone based growth.
That kind of discipline, uh, forecast really will build the credibility with spac, which is the most valuable currency in the public market.
Chaz Churchwell: Yeah. And for those companies that are looking to get ahead of the curve. Let's kind of, uh, let's take one component that's really hot right now. Uh, in fact, I was just at LD Micro talking on this, on Crypto Treasuries.
Um, let's talk about companies that are looking to get ahead of the curve and talk about crypto Treasuries for just a second on here.
Mike Blankenship: That's certainly an emerging trend. Uh, if you plan to use proceeds to hold digital assets, you need a plan. You have to access regulatory exposure, you're gonna have volatility risk, and have board approved treasury management policies in place from the start.
Uh, that really shows investors you're serious and that you've managed the risk correctly.
Chaz Churchwell: And that's gold. So, okay, everybody get ready because it's about preparation. Proactivity and discipline whenever you're looking to move through these processes. So next time, make sure you come back, subscribe below, because we're gonna be covering O in the framework and that's organizing advisors.
Hey Michael, thanks so much. Appreciate you brother.