Mercato Partners Acquisition Corporation
Focusing on companies that have earned the right to grow
We are with you to do the hard pull
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Taking pearls to market
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- We are a newly incorporated blank check company incorporated in Delaware for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses or entities, which we refer to throughout this prospectus as our initial business combination. With a world class, results driven management team, Mercato Partners Acquisition Corporation is focused on acquiring a high-performing company, with a proven disruptive offering, and market-leading organic growth, in the technology or branded consumer space.
- OUR SPONSOR – Mercato Partners Acquisition Group, LLC. Mercato Partners Acquisition Group, LLC. was formed as an affiliate to Mercato Partners, a technology and branded consumer products focused private investment firm founded by Dr. Warnock. We intend to capitalize on the ability of the Mercato Partners management team and the broader Mercato Partners platform to identify, acquire and operate a business in either the technology or branded consumer products sector that possesses the suitable characteristics to achieve attractive long-term risk adjusted returns, though we reserve the right to pursue an acquisition opportunity in any business or industry.
Leadership
Press Releases and News
February 27, 2023: Nuvini and Mercato Partners Acquisition Corporation Announce Business Combination Transaction
January 10, 2023: Mercato Partners Acquisition Corporation Signs Letter of Intent for a Business Combination
December 23, 2021: Mercato Partners Acquisition Corporation Announces the Separate Trading of its Class A Common Stock and Warrants, Commencing December 27, 2021
November 23, 2021: Mercato Partners Acquisition Corporation Announces the Full Exercise of Overallotment Option in Connection with its Initial Public Offering
November 8, 2021: Mercato Partners Acquisition Corporation Announces the Closing of its $200M Initial Public Offering
November 4, 2021: Mercato Partners Acquisition Corporation Announces the Pricing of its $200M Initial Public Offering
Acquisition Criteria
We expect to identify high-quality companies that have a number of the characteristics enumerated below. We have found these characteristics to be predictive of investment success. However, we may decide to complete our business combination with a target business that does not meet all of these criteria. We seek to acquire companies that have the following characteristics:
- Predictable, historically proven, high organic growth characteristics. We start with companies with historically proven organic revenue growth. We believe this is a primary screening gateway. Companies still in pre-revenue or with aspirations of future revenue or market penetration do not fit our criteria. But companies currently winning.
- Strong Margins and Unit Economics
- Companies that are scaling or poised to scale exhibit strong gross margins and unit economics. We believe that expenses can be managed over time, but the gross margin profile of a company is more difficult to change and is key in determining its ability to scale in the future.
- Compelling products with formidable barriers to entry. Companies with defendable market positions.
- Strong balance sheet. We will seek companies that are conservatively financed relative to their free-cash-flow generation.
- Looking to fuel their growth with access to capital markets. We seek companies that can benefit from being a public company with broader access to the capital markets and greater governance.
- Large capitalization. We are seeking a company with a market valuation of at least $750 million to $2.5 billion. We believe this range will provide the greatest number of target opportunities for our combination.
- Attractive valuation. We will seek companies at an attractive valuation relative to their long-term intrinsic value; and
- Exceptional management. We seek companies that have trustworthy, talented, experienced, and highly competent management teams. We like management teams that are disruptors and have a strong culture of cultivating growth. They’re visionary, courageous, and nimble, and we like it when they empower managers to be bold, take initiative and be able to take purpose-driven risks.
These criteria are not intended to be exhaustive. Our evaluation relating to the potential target may lead to a target whose value characteristics may not be enumerated here. Our Investment Team may deem other factors of value that would lead to a successful combination. In the event that we decide to enter into our initial business combination with a target business that does not substantially meet the above criteria and guidelines, we will disclose that the target business does not substantially 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 tender offer documents or proxy solicitation materials that we would file with the SEC.
Three Core Pillars
Mercato Partners was founded 15 years ago, upon three principles drawn from decades of prior principal
Three Core Pillars
- A recognition of the compelling investment opportunity available in underserved and overlooked geographies.
- The impact of authentic value-add delivered to specific moments during a high-growth company’s evolution, and
- The de-risking nature of historically demonstrated organic growth.
Results
- We have a proven sourcing and investment methodology, being the partner of choice for underserved companies in under-sourced geographies.
- We know how to pick winners; we’ve had 5 unicorns out of 30 investments
- We have a proven ability to create growth, with a 36% total portfolio revenue growth rate since inception.
- And our investment track record is strong, having generated 34% pooled net IRR for investors – all deal, all funds, all 14 years.
- Finally, we’re confident we can create value in the public markets because we’ve done it before, with 5 of our 30 portfolio investments to date going public through regular-way IPOs.
Mercato Partners evaluates metropolitan areas across the US for characteristics that give rise to high-growth deal flow, often starved for capital.
We examine:
- Tech-oriented research universities with thriving innovation hubs producing new product designs
- Large tech companies, public and private, spinning out teams, ideas, and best practices
- A well-educated work force – youthful, healthy, and driving organic growth
- Attractive places to live with population inflows, and
- A general encouragement and celebration of entrepreneurship