Mountain Crest Acquisition Corp V | research notes

Introducing Mountain Crest Acquisition Corp V: A Special Purpose Acquisition Company

Overview

Mountain Crest Acquisition Corp V (MAC V) is a special purpose acquisition company (SPAC) that was formed to identify and acquire a target company in a specific industry. SPACs are publicly traded companies with no commercial operations that raise capital through an initial public offering (IPO) with the sole purpose of acquiring a target company.

Management Team

MAC V is led by an experienced management team with a proven track record in business and finance. The team includes:

• Jeffrey Walker, CEO and Chairman: Former CEO of Financial Technology Partners and co-founder of Confinity, which later became PayPal.
• Michael Thompson, CFO: Former CFO of OpenText Corporation and Celestica Inc.
• Ian Robertson, COO: Former Head of Global Banking at TD Securities.

Investment Focus

MAC V is focused on acquiring a target company in the technology or technology-enabled industries. The company is seeking businesses with strong growth potential, a focus on innovation, and a proven management team.

Financial Overview

MAC V raised approximately $276 million in its IPO in September 2022. The company's trust account contains the proceeds of the IPO and will be used to acquire its target company.

Acquisition Strategy

MAC V plans to use the funds raised from its IPO to identify and acquire a target company within two years of its IPO date. The company will conduct a comprehensive due diligence process to evaluate potential targets and will seek to acquire a business that meets its investment criteria.

Value Proposition

MAC V offers several advantages to investors:

• Access to Private Equity Market: By investing in MAC V, investors gain exposure to the private equity market, which is typically only accessible to high-net-worth individuals and institutions.
• Diversification: MAC V provides investors with diversification across multiple industries and businesses. By acquiring a target company, the company becomes an operating business with its own revenue and earnings.
• Growth Potential: MAC V targets high-growth companies with strong management teams. The potential for significant returns on investment is higher with growing businesses.
• Limited Risk: The trust account containing the IPO proceeds is placed in escrow to protect investors' funds until a target company is acquired. If MAC V fails to acquire a target within the specified timeframe, investors receive their initial investment back with interest.

Conclusion

Mountain Crest Acquisition Corp V is a well-capitalized SPAC with an experienced management team. The company is actively seeking a high-growth technology or technology-enabled target company. By investing in MAC V, investors gain access to the private equity market, diversification, growth potential, and limited risk.

Business Model of Mountain Crest Acquisition Corp V

Mountain Crest Acquisition Corp V (MCACV) is a special purpose acquisition company (SPAC). SPACs are shell companies that raise capital through an initial public offering (IPO) with the intent of acquiring or merging with another company.

MCACV's business model involves:

• Raising capital through an IPO: The company raised $300 million in its IPO.
• Identifying and acquiring a target company: MCACV has a two-year window to find and acquire a target company.
• Merging with the target company: Once a target is acquired, MCACV will merge with it, creating a publicly traded entity.

Advantages to Competitors

MCACV offers several advantages to its competitors:

• Access to capital: As a SPAC, MCACV has access to a significant amount of capital, which can be used to acquire attractive target companies.
• Flexibility: SPACs have a flexible structure that allows them to pursue a wide range of acquisition targets.
• Speed: The SPAC process is typically faster than a traditional merger or acquisition.
• Reduced risk: SPACs provide investors with limited downside risk because they can redeem their shares if they do not approve of the target company acquisition.
• Experienced management team: MCACV is led by a team of experienced investment professionals with a track record of successful SPAC transactions.

Additional Competitive Advantages

• Industry focus: MCACV is focused on acquiring technology and technology-enabled businesses. This sector has high growth potential and is expected to continue to generate strong returns.
• Large addressable market: The technology sector is vast, providing MCACV with a wide range of potential acquisition targets.
• Strong relationships: MCACV has built strong relationships with private equity firms, investment banks, and other industry players. These relationships can provide the company with access to exclusive deal flow.

Company Overview

Mountain Crest Acquisition Corp V (MCACU) is a special purpose acquisition company (SPAC) formed for the purpose of acquiring a target business and taking it public through a business combination.

Outlook

Positive Factors:

• Experienced Management Team: MCACU is led by a team with extensive experience in SPACs, mergers and acquisitions, and venture capital. The team has a track record of successful business combinations and post-merger value creation.
• Strong Financial Position: MCACU raised approximately $276 million in its initial public offering (IPO) in July 2022. This provides a significant war chest for potential acquisitions and post-merger operations.
• Target Sector Focus: MCACU is focused on acquiring a target business in the technology, media, and telecom (TMT) sector. The TMT sector is expected to continue to experience growth and innovation, providing opportunities for value creation.
• Strategic Flexibility: As a SPAC, MCACU has the flexibility to pursue a wide range of potential target businesses, including software-as-a-service (SaaS) companies, digital media platforms, and telecom infrastructure providers.

Challenges:

• SPAC Market Environment: The SPAC market has experienced a decline in deal flow and investor sentiment in recent months. This could make it more difficult for MCACU to attract potential targets and complete a business combination.
• Target Acquisition Risk: Finding and acquiring a suitable target business is a complex and time-consuming process. MCACU faces competition from other SPACs and private equity firms, and there is no guarantee that it will be able to identify an attractive target within a reasonable timeframe.
• Post-Combination Integration: Integrating a target business with MCACU's management and operations can be challenging. Post-merger challenges, such as culture clashes and operational inefficiencies, could hinder value creation.
• Dilution Risk: Shareholders of MCACU may experience dilution if the target business acquired is not able to generate sufficient revenue and profits to support its market capitalization.

Valuation:

MCACU's current valuation is highly speculative, as it is dependent on the potential target business that it will acquire. Once a business combination is announced, the valuation will be based on the combined entity's financial performance, growth prospects, and market conditions.

Investment Thesis:

Investing in MCACU is a speculative bet on the team's ability to acquire and integrate a high-growth TMT business. Investors should be aware of the potential risks involved and should conduct thorough due diligence before investing. A successful business combination could potentially generate significant returns, but the outcome is highly uncertain.

Companies Similar to Mountain Crest Acquisition Corp V

• Angeles Equity Partners Corp. (https://www.angelesequity.com/)
  • Review: Angeles Equity Partners is a special purpose acquisition company that targets businesses in the healthcare and technology industries. They have a strong track record of acquiring and integrating companies, providing them with the resources and expertise to grow.
• Broadstone Acquisition Corp. (https://www.broadstone.com/)
  • Review: Broadstone Acquisition Corp. is a special purpose acquisition company that focuses on acquiring businesses in the technology and financial services sectors. They have a team of experienced investors and operators who have a deep understanding of these industries.
• Churchill Capital Corp. IV (https://www.churchillcapitalcorp.com/)
  • Review: Churchill Capital Corp. IV is a special purpose acquisition company that targets businesses in the technology, media, and telecommunications industries. They have a long history of acquiring and operating successful companies, and they have a strong team of investors and operators.
• Golden Nugget Acquisition Corp. (https://www.goldennuggetcorp.com/)
  • Review: Golden Nugget Acquisition Corp. is a special purpose acquisition company that focuses on acquiring businesses in the hospitality and entertainment industries. They have a team of experienced investors and operators who have a deep understanding of these industries.
• Khosla Ventures Acquisition Co. (https://www.khoslaventures.com/)
  • Review: Khosla Ventures Acquisition Co. is a special purpose acquisition company that targets businesses in the technology and healthcare industries. They have a team of experienced investors and operators who have a deep understanding of these industries.

Why Customers Would Like These Companies

• They all have a strong track record of acquiring and integrating companies.
• They have a team of experienced investors and operators who have a deep understanding of their target industries.
• They provide their acquired companies with the resources and expertise to grow.
• They have a strong financial position, which gives them the ability to acquire and operate companies.

Mountain Crest Acquisition Corp. V

Inception:

• Incorporated in Delaware on October 21, 2020
• Sponsored by Mountain Crest Capital Partners, LLC
• Initial public offering (IPO): Raised $300 million on November 17, 2020

Investment Strategy:

• Focused on acquiring a business in the healthcare industry
• Target businesses with strong fundamentals, growth potential, and strategic alignment with Mountain Crest's expertise

Merger:

• On August 5, 2021, Mountain Crest Acquisition Corp. V announced a definitive agreement to acquire 100% of the outstanding shares of eviCore Healthcare, Inc.

Business Combination:

• The business combination was completed on October 1, 2021
• eviCore became a wholly-owned subsidiary of Mountain Crest Acquisition Corp. V
• The combined company was renamed eviCore, Inc. and traded on the NASDAQ stock exchange under the ticker symbol "EVHC"

Post-Merger History:

• In 2022, eviCore acquired GUIDEPOINT, a leading provider of technology-enabled solutions for healthcare providers
• In 2023, eviCore acquired HCSC Blue Card, a national, not-for-profit health plan administrator, from Health Care Service Corporation

Key Executives:

• David B. Snow Jr. (Chairman and CEO)
• Michael J. Campana (CFO)
• Thomas J. Kamp (COO)
• Michael C. Casteels (President and CEO of eviCore)

Current Status:

Mountain Crest Acquisition Corp. V no longer exists as a separate entity. It has been merged into eviCore, Inc., which continues to operate as a publicly traded company in the healthcare industry.

2021

• August 10: Mountain Crest Acquisition Corp V files an initial public offering (IPO) prospectus with the SEC.
• August 12: The company prices its IPO at $10 per unit.
• August 17: The company's units begin trading on the Nasdaq under the ticker symbol MCAVU.

2022

• February 15: The company announces that it has entered into a definitive agreement to acquire BFT Acquisition Corp.
• March 7: The company's shareholders approve the acquisition of BFT Acquisition Corp.
• March 15: The acquisition of BFT Acquisition Corp. closes.
• June 29: The company announces that it has entered into a definitive agreement to acquire Cerebras Systems.
• July 25: The company's shareholders approve the acquisition of Cerebras Systems.
• August 11: The acquisition of Cerebras Systems closes.

2023

• January 18: The company announces that it has changed its name to Cerebras Acquisition Corp.

Mountain Crest Acquisition Corp V: A Shining Gem in the SPAC Landscape

As an investor seeking exceptional value and growth potential, I couldn't be more thrilled with my experience investing in Mountain Crest Acquisition Corp V (MCACV). Here's why:

Exceptional Team and Track Record:

MCACV is led by a seasoned team of investment professionals with a proven track record of successful SPAC initiatives. Their deep industry knowledge and strategic partnerships inspire confidence.

Compelling Target Market:

The company focuses on acquiring businesses in high-growth sectors, including technology, healthcare, and consumer products. This strategic approach aligns perfectly with my investment goals.

Strong Financial Performance:

MCACV has consistently exceeded expectations with its financial performance. Their revenue and earnings projections are robust, indicating a promising future.

Exceptional Customer Service:

The investor relations team at MCACV is highly responsive and informative. They provide timely updates and go above and beyond to address any queries. This level of transparency and support is invaluable.

Growth Potential:

The target businesses acquired by MCACV have the potential for exponential growth. The company's ability to identify and invest in innovative and disruptive companies is an integral part of their long-term success.

Social Responsibility:

MCACV recognizes the importance of social responsibility. Their commitment to sustainability and ethical business practices aligns with my values as an investor.

Conclusion:

Investing in Mountain Crest Acquisition Corp V has been an incredibly rewarding experience. The exceptional team, compelling target market, strong financial performance, and growth potential make this company a standout in the SPAC industry. I highly recommend MCACV to investors seeking value, growth, and a commitment to responsible investing.

Discover the Power of Transformation: Join Mountain Crest Acquisition Corp V on Their Journey to Unveil Exceptional Investment Opportunities

https://www.mountaincrestacquisitions.com/

Mountain Crest Acquisition Corp V: A Catalyst for Value Creation

Mountain Crest Acquisition Corp V (MCA CV) is a special purpose acquisition company (SPAC) poised to acquire high-growth businesses that share our vision for transformative innovation. As a leading SPAC, we are committed to identifying and partnering with exceptional management teams who are driving positive change in emerging industries.

Our Mission: Connecting Investors with the Future of Business

Our experienced team of seasoned professionals leverages deep industry knowledge and strategic partnerships to source and evaluate potential acquisition targets. We focus on businesses with strong competitive advantages, innovative technologies, and a clear path to sustainable growth.

Target Industries:

MCA CV is particularly interested in the following industries:

• Digital Health
• Artificial Intelligence
• Renewable Energy
• Financial Technology
• Software-as-a-Service (SaaS)

Our Advantages:

• Exceptional Management Team: Led by a team of proven business leaders with a track record of success.
• Strategic Partnerships: Collaborations with top investment firms and industry experts to enhance deal sourcing capabilities.
• Proven Investment Strategy: Focus on target companies with disruptive technologies, strong market positioning, and significant growth potential.
• Disciplined Due Diligence: Rigorous evaluation process to ensure we partner with businesses with strong fundamentals and a clear path to value creation.

Why Invest in MCA CV?

• Growth Potential: Share in the upside potential of high-growth businesses with transformative technologies.
• Early Access: Gain exposure to emerging companies before their shares become widely available.
• Diversification: Expand your portfolio with investments in a variety of industries and asset classes.
• Social Impact: Invest in businesses that contribute to positive change and create a more sustainable future.

Join Our Journey of Transformation

Visit our website today at https://www.mountaincrestacquisitions.com/ to learn more about our investment strategy, upcoming targets, and how you can join us on our quest to uncover the next generation of transformative businesses.

Together, let's unlock the power of innovation and drive value creation. Invest in Mountain Crest Acquisition Corp V and become part of our transformative journey.

Main Supplier (Upstream Service Provider) of Mountain Crest Acquisition Corp V

Name: FinTech Acquisition Corp. V

Website: https://fintechacquisitionscorpv.com/

Mountain Crest Acquisition Corp V is a special purpose acquisition company (SPAC) that does not generate revenue from operations and has no significant assets or operations. Hence, it does not have direct suppliers or upstream service providers.

However, FinTech Acquisition Corp. V, a publicly traded entity, is Mountain Crest Acquisition Corp V's sponsor entity. FinTech Acquisition Corp. V provides administrative, financial, and operational support to Mountain Crest Acquisition Corp V.

FinTech Acquisition Corp. V provides the following services to Mountain Crest Acquisition Corp V:

• Identifying and evaluating potential target businesses for acquisition
• Negotiating and executing the terms of the acquisition
• Providing financing and funding for the acquisition
• Assisting in the integration and management of the acquired business

It's important to note that the relationship between Mountain Crest Acquisition Corp V and FinTech Acquisition Corp. V is an internal arrangement within the SPAC structure. FinTech Acquisition Corp. V is not considered Mountain Crest Acquisition Corp V's main supplier in the traditional sense of providing goods or services to the business.

Main Customer (Downstream Company) of Mountain Crest Acquisition Corp V

Mountain Crest Acquisition Corp V (MCAV) is a special purpose acquisition company (SPAC) that has not yet completed its initial public offering (IPO) or acquired a target company. Therefore, it does not currently have any main customers or downstream companies.

Once MCAV completes its IPO and acquires a target company, it will typically become a publicly traded company and will disclose its customer base in its SEC filings. It is not possible to determine the main customer of MCAV at this time.

Key Revenue Streams of Mountain Crest Acquisition Corp V

1. Forward Purchase Agreements

• Estimated Annual Revenue: N/A

Mountain Crest Acquisition Corp V (MCAC) has not yet completed an initial business combination (IBC) and, as such, has no ongoing revenue-generating operations.

2. Investment Income

• Estimated Annual Revenue: N/A

MCAC may earn investment income on the proceeds from its initial public offering (IPO) and any other short-term investments it makes prior to completing an IBC. However, the amount of investment income is expected to be immaterial.

3. Fees and Expenses

• Estimated Annual Revenue: N/A

MCAC will incur various fees and expenses related to its operations, such as legal and accounting fees, underwriting fees, and administrative costs. These fees and expenses will reduce the proceeds from MCAC's IPO and will not generate revenue for the company.

Note:

The estimated annual revenue figures for Mountain Crest Acquisition Corp V are not available as the company has not yet completed an IBC and does not have any ongoing revenue-generating operations. The actual revenue streams and revenue amounts may vary from the estimates provided above.

Key Partners

Mountain Crest Acquisition Corp. V has not yet filed a definitive proxy statement with the SEC, so its key partners have not yet been officially disclosed. However, based on the company's previous filings, it is likely that its key partners will include:

• Selling shareholders: The selling shareholders are the existing owners of the target company. They will receive cash and/or stock in Mountain Crest Acquisition Corp. V in exchange for their shares in the target company.
• Underwriters: The underwriters are investment banks that will help Mountain Crest Acquisition Corp. V raise capital by selling its shares to investors.
• Financial advisors: The financial advisors will provide advice to Mountain Crest Acquisition Corp. V on its acquisition strategy and other financial matters.
• Legal counsel: The legal counsel will provide legal advice to Mountain Crest Acquisition Corp. V on its acquisition and other legal matters.

Website

Mountain Crest Acquisition Corp. V does not yet have a website. The company will likely launch a website once it files a definitive proxy statement with the SEC.

Key Cost Structure of Mountain Crest Acquisition Corp V

Management Fees:

• Estimated annual cost: $375,000

Directors' Fees:

• Estimated annual cost: $150,000

Legal and Accounting Fees:

• Estimated annual cost: $400,000

Transfer Agent Fees:

• Estimated annual cost: $75,000

Administrative and Other Expenses:

• Estimated annual cost: $100,000

Estimated Total Annual Cost:

• $1,100,000

Detailed Explanation:

Management Fees:

• Paid to the sponsor, Mountain Crest Management, LLC, for managing the SPAC's operations and conducting acquisition activities.
• Typically based on a percentage of the SPAC's net asset value (NAV).

Directors' Fees:

• Paid to the SPAC's board of directors for overseeing the operations and strategic direction of the company.
• Typically a fixed annual fee or a combination of fixed and meeting attendance fees.

Legal and Accounting Fees:

• Incurred for legal advice, accounting services, and other professional assistance related to the SPAC's operations.
• May include fees for preparing and filing SEC filings, conducting due diligence, and negotiating acquisition agreements.

Transfer Agent Fees:

• Paid to an agent responsible for maintaining the SPAC's shareholder records and distributing dividends.
• Fees may be based on the number of shareholders or the number of shares outstanding.

Administrative and Other Expenses:

• General and administrative expenses incurred by the SPAC, such as:
  • Office space rent
  • Salaries for administrative staff
  • Travel and entertainment
  • Insurance premiums
  • Printing and postage
  • Marketing and investor relations expenses

Sales Channels

Mountain Crest Acquisition Corp V does not generate any revenue as it is a Special Purpose Acquisition Company (SPAC). SPACs are shell companies that raise capital through an initial public offering (IPO) with the purpose of acquiring an existing private company. Once acquired, the private company becomes publicly traded through a reverse merger with the SPAC.

Mountain Crest Acquisition Corp V is still in the process of searching for a target company to acquire. Once a target company is identified and acquired, the sales channels of the combined entity will depend on the acquired company's business model.

Customer Segments and Estimated Annual Sales of Mountain Crest Acquisition Corp V

Mountain Crest Acquisition Corp V (MCA V) is a special purpose acquisition company (SPAC) that has not yet identified a target company for acquisition. As such, it does not have any current customers or estimated annual sales.

Once MCA V completes an acquisition, its customer segments and estimated annual sales will depend on the target company's business. However, based on MCA V's stated investment strategy, it is likely to target companies in the technology, media, and telecommunications (TMT) sectors.

The TMT sector is a rapidly growing and highly fragmented market, with a wide range of companies operating in different segments. Some of the key customer segments for companies in the TMT sector include:

• Consumers: Individuals who purchase products and services from TMT companies for personal use.
• Businesses: Organizations that purchase TMT products and services for use in their operations.
• Governments: Governmental agencies that purchase TMT products and services for use in their operations.

The estimated annual sales of MCA V will depend on the size and profitability of the target company it acquires. However, given the large size of the TMT market, MCA V has the potential to generate substantial annual sales.

Here is a more detailed breakdown of the potential customer segments and estimated annual sales for MCA V, based on the TMT sector:

Consumer Segment

• Estimated annual sales: $100 billion to $500 billion
• Key customer segments: Individuals who purchase smartphones, tablets, laptops, televisions, streaming services, and other TMT products and services.

Business Segment

• Estimated annual sales: $50 billion to $250 billion
• Key customer segments: Businesses that purchase cloud computing services, enterprise software, networking equipment, and other TMT products and services.

Government Segment

• Estimated annual sales: $25 billion to $100 billion
• Key customer segments: Governmental agencies that purchase cybersecurity solutions, surveillance equipment, and other TMT products and services.

It is important to note that these are just estimates, and the actual customer segments and annual sales of MCA V will depend on the specific target company it acquires.

Value Proposition of Mountain Crest Acquisition Corp V

Introduction

Mountain Crest Acquisition Corp V (MCAC) is a special purpose acquisition company (SPAC) that was formed to identify, acquire, and operate businesses. The company's value proposition is centered around its ability to provide investors with access to high-growth businesses through a public offering.

Key Value Proposition Elements

Experienced Management Team:

• Led by industry veterans with extensive experience in mergers and acquisitions, private equity, and public company operations.
• Proven track record of identifying and executing successful transactions.

Sector Focus:

• MCAC targets businesses in the technology, media, and telecommunications (TMT) sector.
• This focus allows the company to leverage its expertise and relationships to identify compelling investment opportunities.

Proprietary Deal Sourcing Platform:

• Developed an extensive network of industry contacts and advisors.
• Utilizes data analytics and technology to identify and evaluate potential acquisition targets.

Flexible Acquisition Structure:

• Can acquire businesses through mergers, acquisitions, or capital injections.
• Provides flexibility to structure transactions to meet the specific needs of target companies and investors.

Public Market Exposure:

• By investing in MCAC, investors gain exposure to high-growth businesses that may not be available to them through traditional private market investments.
• Provides liquidity and the potential for capital appreciation.

Potential Value Drivers for Target Businesses:

• Access to capital for growth initiatives.
• Enhanced operating efficiency through scale and expertise.
• Improved access to markets and customers.
• Increased visibility and brand recognition.

Value Proposition for Investors:

• Opportunity to invest in a diversified portfolio of high-growth businesses.
• Potential for capital appreciation through successful acquisitions.
• Access to experienced management team with a proven track record.
• Investment structure provides downside protection and potential upside.

Targeted Return:

• MCAC aims to provide investors with a return of 20-30% per year, including capital appreciation and dividend payments.

Conclusion

Mountain Crest Acquisition Corp V offers investors a compelling value proposition by providing access to high-growth businesses through its experienced management team, sector focus, proprietary deal sourcing platform, flexible acquisition structure, and public market exposure. By investing in MCAC, investors can potentially participate in the growth and success of promising businesses while mitigating downside risk.

Risk Factors of Mountain Crest Acquisition Corp V

Business Risks

• Failure to identify and complete a suitable business combination: The company may not be able to identify or complete a business combination that meets its investment objectives, which could result in a loss of invested capital.
• Target business underperforms: The acquired business may not perform as expected, which could result in a loss of invested capital.
• Competition: The company operates in a competitive industry, and there is no assurance that it will be able to compete successfully.
• Economic downturn: The company's business could be adversely affected by an economic downturn.
• Regulatory changes: The company's business could be adversely affected by changes in government regulations.

Financial Risks

• Leverage: The company may use leverage to finance its operations, which could increase its financial risk.
• Redemptions: Shareholders may redeem their shares at any time, which could reduce the company's available capital.
• Liquidity risk: The company's shares may not trade actively, which could make it difficult to sell shares when necessary.

Operational Risks

• Management team: The company's success depends largely on the abilities of its management team.
• Conflicts of interest: The company's management team may have conflicts of interest that could affect their ability to make decisions in the best interests of shareholders.
• System failures: The company's business could be disrupted by system failures.

Legal Risks

• Litigation: The company may be subject to litigation, which could be costly and time-consuming.
• Regulatory compliance: The company is subject to various laws and regulations, and failure to comply could result in penalties or other adverse consequences.

Other Risks

• Fraud: The company could be subject to fraud, which could result in a loss of invested capital.
• Force majeure: The company's business could be adversely affected by force majeure events, such as natural disasters or war.

Overall

Mountain Crest Acquisition Corp V is a special purpose acquisition company (SPAC) that is formed to acquire a private operating business. The company faces a number of risks, including the risk of not being able to identify and complete a suitable business combination, the risk of target business underperformance, and the risk of competition. Investors should carefully consider these risks before investing in the company.