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Case Study: Last Mile Delivery Electric Vehicle Manufacturer Positioned for SPAC Acquisition

Learn how Withum's audit, Special Purpose Acquisition Company (SPAC) and U.S. Securities and Exchange Commission (SEC) Service Teams enabled an electric vehicle startup, emerging growth company to be ready for a SPAC acquisition in under five months.

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Executive Summary

A leading manufacturer of fully electric Class 5 to Class 8 commercial vehicles was rapidly growing due to breakthroughs in last mile delivery efforts. Recognizing the value of their innovative delivery model, the company engaged Withum to provide the accounting, auditing and business network necessary to position the company for an Initial Public Offering (IPO) or SPAC.

The Client

The California-based zero-emissions fleet vehicle manufacturer was entering the last mile delivery initiative as a startup and emerging growth company. The business was seeing significant growth and leadership knew they needed additional capital, as well as finance and accounting support to sustain their success and become a viable target company for a SPAC acquisition.

The Challenge

The company was challenged with maintaining a scalable and sustainable business model in a rapidly growing, competitive market. The executive team also knew that if they wanted to take the company public, they needed to meet specific financial reporting and investor requirements and recruit the in-house support and external relationships required to drive their business forward having only six months to be ready for a SPAC acquisition, leadership also knew they needed to move quickly to stay ahead of their competition and execute the plan.

The Approach And Solution

Recognizing Withum as a leader in the financial services and manufacturing, distribution and logistics space, the electric vehicle company chose Withum for its knowledge, nimbleness and ability to deliver under tight deadlines. Because of Withum’s reputation in the investment banking area and extensive professional network, the company also received trusted ideas and recommendations for outside consultants who were able to provide guidance on necessary hires and act as the intermediary between the company and Withum to ensure processes were moving along seamlessly.

Pulling together a team of SEC specialists and complex debt and equity experts to complement the management’s resources, Withum met with leadership to create a plan with a detailed calendar, including weekly and daily check-ins, to hold the team accountable to the company’s short turnaround time.

Within four and a half months, Withum’s team completed three annual audits and walked leadership through how the business’s future might look as a public company, which included structuring stock options and equity and convertible debt offerings. In addition, Withum offered advice on supply chains and accounting processes and procedures to make sure the company maintained their internal controls as the business continued to grow quickly.

The Results, ROI

Because of Withum’s responsiveness, flexibility and working knowledge of how startup and mid-sized companies operate, the client service team was able to take the EV manufacturer from a startup with a dream to a fully SEC-compliant business.

The company now has in-roads to additional capital necessary to propel its growth and maintain market share. It also has the infrastructure and processes necessary to sustain dramatic growth.

To date, the company has partnered with household name brands to deliver packages from the warehouse to consumers’ doorsteps with a sustainable, zero-emission last mile delivery option. With time to space, the EV company was able to meet the six-month turnaround time to be in a position to become a publicly traded company through a merger with an acquisition corporation.

Looking for a client service team to take your electric vehicle manufacturer from startup to going public? Reach out to us to further address your questions!

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