Company: FGMCU
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001104659-25-004764
Chunk: 170

Company: FG Merger II Corp.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 170
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, attractive targets may become scarcer and there may be more competition for attractive targets. This could increase the cost of our initial business combination and could even result in our inability to find a target or to consummate an initial business combination” on page 34 for additional information. The high level of competition may negatively
impact the acquisition terms we are able to negotiate because, among other things, attractive target companies will be able to demand
higher purchase prices and more favorable closing conditions, including minimum cash required in the trust account at closing or PIPE
financing requirements and board designation rights with respect to the combined company.

Business Combination Criteria

Consistent with our business strategy, we have identified the following
general criteria and guidelines that we believe are important in evaluating prospective target businesses. We will use these criteria
and guidelines in evaluating initial business combination opportunities, but we may decide to enter into our initial business combination
with a target business that does not meet these criteria and guidelines. We intend to seek to acquire companies within industries that
exhibit strong characteristics including, but not limited to, the following:

| ● | Public market-ready 
 scale;              |

| ● | Strong management 
 team;             |

| ● | Recurring revenues; |

| ● | High barrier 
 to entry;    |

| ● | Long-term organic 
 growth;           |

| ● | Consolidation           
 opportunities to scale; |

| ● | Attractive            
 competitive dynamics; |

| ● | Differentiated            
 products or services; and |

| ● | Strong cash      
 flow conversion. |

These criteria are not intended to be exhaustive. Any evaluation relating
to the merits of a particular initial business combination may be based, to the extent relevant, on these general guidelines as well
as other considerations, factors and criteria that our management team may deem relevant. In the event that we decide to enter into our
initial business combination with a target business that does not meet the above criteria and guidelines, we will disclose that the target
business does not meet the above criteria in our stockholder communications related to our initial business combination, which, as discussed
in this prospectus, would be in the form of proxy solicitation materials or tender offer documents, as applicable, that we would file
with the SEC. In evaluating a prospective target business, we expect to conduct a due diligence review which may encompass, among other
things, meetings with incumbent management and employees, document reviews, interviews of customers and suppliers, inspections of facilities,
as well as reviewing financial and other information which will