Zukin Certification Services Provides Reasonable Basis Review of SPAC Target Projections
Zukin Certification Services (ZCS) today announced the launch of the Zukin Reasonable Basis Review (Zukin RBR), a new and essential service designed for SPACs seeking an independent review of their target company's financial projections. ZCS developed the Zukin RBR financial due diligence service in response to the SEC's proposed rules "to enhance disclosure and investor protection relating to SPAC projections" issued on March 30, 2022.
"We believe our Zukin RBR financial projection due diligence service will not only help sponsors follow SEC guidance, but also allow their target companies to have financial projections reviewed and validated by a trusted third-party, thereby proving comfort for investors," said Jim Zukin, Chairman and CEO of ZCS.
ZCS was founded by Jim Zukin, a co-founder of Houlihan Lokey Howard & Zukin (now Houlihan Lokey, NYSE: HLI) and pioneering provider of fairness and solvency opinions. ZCS is a highly specialized financial due diligence firm committed to spearheading innovation to support the next generation of SPACs.
The Zukin RBR is a financial due diligence service which provides SPAC Boards with a third-party expert review of the target company's projections and underlying assumptions based on the net available capital called for at De-SPAC. ZCS provides their findings in a report that is available to be filed in a proxy.
As noted in the SEC's proposed rules: "management must have the option to present in Commission filings its good faith assessment of a registrant's future performance. Management, however, must have a reasonable basis for such an assessment. An outside review of management's projections may furnish additional support for having a reasonable basis for a projection."
Zukin used this guidance in establishing the parameters of the Zukin RBR service. "Our role is laser-focused on oversight and on serving high-quality SPAC targets during their projection preparation," said Zukin. "When we issue our RBR report, we fully stand behind our review of their projections."
ZCS has assembled a world-class team of leaders in the financial community who share Zukin's focus and ethos, including:
- Matt McGuire, former Executive Director at the World Bank
- Rajit Malhotra, former McKinsey Managing Partner in the Los Angeles region
- Tim Maness, CPA, Chief Accountant at Zukin Certification Services
- Ari Schottenstein, Partner at Zukin Partners
- Joe Chang, former Houlihan Lokey investment banker
- Jacob Salk, former Houlihan Lokey investment banker
- Thomas Waldman, former Managing Director, Legal at The Gores Group
The team is rounded out by other experts in finance, accounting, corporate governance, public company compliance, and the SPAC/De-SPAC process.
About Zukin Certification Services
Zukin Certification Services was founded by Jim Zukin, a pioneer in the creation and implementation of financial opinions for fair market value, fairness, and solvency as a co-founder of Houlihan Lokey Howard & Zukin (now Houlihan Lokey, NYSE: HLI). ZCS will advise SPAC Boards of Directors, and their Audit Committees, by reviewing their projections emerging from the De-SPAC process while also providing them training materials in financial literacy and corporate governance. The Zukin RBR is not intended to provide a recommendation or judgment on the merits or the pricing of a particular SPAC transaction. For more information, please visit www.z-spac.com.
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