Bermuda-based managing general agent Banyan Risk has partnered with SPAC-focused financial advisory firm Zukin Certification Services to offer a service that helps companies go public.
Zukin’s service, the Reasonable Basis Review (RBR), is designed for Special Purpose Acquisition Companies (SPACs) seeking an independent review of target projections and readiness to operate as a public company.
The service addresses the recent SEC proposed rules which state that management must have a reasonable basis for the assumptions underlying their prospective financial statements.
“This past year has been a difficult environment to say the least, and our aim is to assist our SPAC clients as they navigate these challenging markets,” said Tim Usher-Jones, Founder and Chief Executive Officer of Banyan Risk.
Banyan will offer its clients a $25,000 discounted rate on the Zukin RBR service, as well as a discounted D&O insurance premium.
“Banyan has been successfully executing a strategy to become a leader in underwriting complex risk in the global specialty markets,” said Usher-Jones. “A key focus has been supporting businesses in areas where bespoke risks shouldered by directors and officers continue to evolve, and we have quickly become a leader in providing insurance solutions to SPACs.”
“We are delighted to team up with Banyan Risk to provide this essential service for SPACs. Until today, there has been no external review of a SPAC’s readiness, and no review of the reasonable basis for projections, but we endeavor to change that,” added Jim Zukin, ZCS Chairman and Chief Executive Officer.
“We believe our service will become a market standard, that helps transform how SPACs are viewed in the marketplace. We are excited to see Banyan offer this programme and acknowledge how the RBR™ can serve an as important risk mitigator for SPAC sponsors.”
