De-SPAC Clause: Minimum Cash and Net Tangible Assets Closing Conditions

Conditions to closing are heavily negotiated because failure to satisfy a condition likely gives a party the right to terminate the acquisition agreement. In de-SPAC transactions, the parties seek assurances that the "blank check" acquirer will have enough cash, and oftentimes net tangible assets that can be liquidated, to finance and close the deal. Parties may include a minimum cash condition, a net tangible assets condition, or both. Learn more about minimum cash and net tangible assets closing conditions.          

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