2/14/2023 - Legato II & Southland Successfully Close Business Combination

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  • About Us
  • Ideal Partner
  • Our Team
  • Contact Us
  • SPAC Advantages
  • Investor Relations

Advantages of a Merger With Legato II

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Benefits Versus an IPO

  • Obtain a public currency without going through a time consuming, costly, and uncertain IPO
  • You will know the deal consideration (your selling price) at the beginning of the process rather than at the end (day before listing)
  • Expedited public listing with lower transaction costs
  • Potential closing of the “IPO Window” is not an issue since Legato is already public
  • Legato’s management team has a successful record of completing SPAC transactions 
  • Unlike an IPO underwriter, Legato’s board and management team are highly motivated to see your stock price continue to appreciate after the transaction is closed
  • Flexible deal structure - Legato has the ability to use cash, debt, common stock, preferred stock, contingent consideration, or any combination of these to structure a transaction that works for all parties
  • Flexible deal structure - Unlike a traditional IPO, Allegro can structure a deal with contingent earn-out consideration, which can result in a significantly higher effective price

Benefits Versus Private Equity

  • Create a liquidity event for the owners while allowing them to maintain control
  • Private equity purchasers often seek a controlling interest in the entity while Legato can structure a deal that allows the current owners of the company to maintain control
  • A transaction with Legato would likely result in a cash infusion, rather than a heavily leveraged balance sheet typical of a private equity transaction
  • Less leverage allows management to focus on growing the business, not making interest payments and paying down debt
  • A transaction with Legato would provide greater upside to the our merger partner because they will own a significant portion of the public entity and therefore maintain a substantial interest in the upside of the business
  • All of the advantages typical of a public company, such as greater access to capital (debt and equity), an acquisition currency, increased profile/awareness and greater employee retention and incentive through options

Benefits Versus Strategic Sale

  • Create a liquidity event for the owners while allowing them to maintain control
  • Strategic buyers often downsize the organization and eliminate much of the senior management team
  • Our merger partner will own a significant portion of the public entity and maintain a substantive interest in the upside of the business
  • The company’s legacy can continue as a public entity
  • All of the advantages typical of a public company, such as greater access to capital (debt and equity), an acquisition currency, increased profile/awareness and greater employee retention and incentive through options

Legato Merger Corp. II

777 Third Avenue, 37th Floor

New York, NY 10017

(212) 319-7676

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