Company: HVIIR
Filing Date: 2025-01-13
Form Type: S-1/A
Source: 0001493152-25-001958
Chunk: 142

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-01-13
Form: S-1/A
Chunk 142
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 consultants is activated and comprehensive due diligence activities are undertaken and overseen by us, including a review of the target’s financial statements and model, IPO readiness, commercial and competitive analysis, operations and performance improvement, strategic growth opportunities as well as customary legal and accounting due diligence. This network of advisors has supported Hennessy Capital since inception in 2013 and is now highly familiar with the SPAC vehicle and our comprehensive due diligence process. We believe that our network of established third party advisors and relationships represents an attractive and differentiated value proposition for investors, sellers, target companies and their management teams. As reflected below, the Hennessy VI management team identified and evaluated over 390 potential acquisition target companies and completed meaningful reviews of 115 potential acquisition targets.

Investment Strategy

Our investment strategy is directed at industrial technology and energy transition targets of $500 million or greater in expected aggregate enterprise value and is informed and validated by our research and analysis and complemented by what we believe are favorable market conditions for the SPAC asset class.

The competitive landscape for the SPAC asset class has improved meaningfully in recent years given the overall decline in the number of active SPACs from nearly 600 in 2021 to less than 100 today with expected further contraction to fewer than 50 estimated active SPACs in 2025, according to Santander. In addition, according to Dealogic, the number of companies seeking a public listing currently stands at approximately 250 while the number of companies that have filed an S-1 confidentially are estimated by knowledgeable market participants to be two or three times that number. This backlog presents a compelling universe of potential target opportunities for us. We know from experience that several acquisition targets of prior Hennessy Capital SPACs opted to pursue a business combination with a SPAC to achieve a public listing after encountering significant delays and challenges in a traditional underwritten IPO process. Bolstering this target universe is significant “pent-up” demand generated by portfolio companies of private equity and venture capital firms, as such firms have experienced record “holding period” levels in recent years and are under considerable pressure to return capital to their limited partners and investors via sales or other liquidity events (such as IPOs) of their portfolio companies. Our team has successfully partnered with private equity firms twice previously with Blue Bird (Hennessy I) and NRC Group (Hennessy III) to unlock value and accelerate liquidity for the private equity owners of these two companies.

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Source: Santander

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