Martin Werner of DD3 Capital on the Codere / DDMX SPAC deal
Martin Werner, co-founding partner of DD3 Capital, discusses DDMX's deal to deSPAC with Codere Online. Key topics include what DDMX was looking for in a deal, how DDMX worked with their partners in structuring their deal, and why DDMX thinks Codere Online's omnichannel presence gives them a leg up in attacking and winning Latam markets. Towards the end, Martin discusses how he's looking at Betterware (BWMX, which was DD3's first SPAC) and what DD3 will be looking at in their SPAC going forward.Chapters0:00 Intro1:45 What DDMX was looking for in a deal3:10 DDMX's proxy and the companies they passed on8:30 DDMX's forward purchase agreement with Baron Funds12:35 What happened between contacting Codere in January and signing the BCA in June?15:15 What attracted DDMX to Codere online?18:40 Codere's Spanish market share and outlook21:55 Discussing Codere's projections and the assumptions behind them25:05 Codere's longer term projection and financials26:00 How lower redemptions will allow Codere to accelerate growth28:00 Codere's phase 3 plans to move into the U.S. market31:35 Similarities between Codere Online and Golden Nugget Online32:30 Why DDMX isn't subject to the winner's curse35:30 Wrapping up the Codere discussion36:35 Betterware (BWMX) discussion39:55 Breaking down the distributor churn at BWMX44:10 Comparing BWMX's post-COVID slowdown to cable46:30 BWMX near term headwinds48:05 What DD3 looks when deSPACing companies