Freedom Acquisition Holdings, Inc. (FRH)

Incorporated in Delaware in June, 2006, Freedom Acquisition Holdings, Inc. is a blank check company which is yet in the development stage. It is formed to acquire an unidentified operating business or several operating businesses through a merger, stock exchange, asset acquisition, reorganization or similar business combination. The company has not commenced commercial operations and its efforts have been limited to organizational activities. Its effort in identifying prospective target businesses is not limited to a particular industry, instead, it intends to focus on various industries and target businesses in the United States and Western Europe.


For five months ended October 2006, its revenue totaled $3,000 which was plainly from interest earnings while net income totaled $2,000. Results are not comparable as the company didn't report comparable prior period financials. The company has neither engaged in any operations nor generated any revenues till date since it is currently engaged primarily in asset acquisition, reorganization or similar business combination.


It focuses on potential target businesses with valuations between $500 million and $1.5 billion for which the company came up with an IPO last year with an issue size of about $480 million. The sum will seek to fund acquisition of business combinations on the condition that if the company does not get any prospective business to acquire within 18 month of such issue, it may liquidate and distribute the amount to the stockholders.


The criteria in evaluating the target business is established companies with proven track record and strong free cash flows, strong industry position with diversified customer as well as supplier base and experienced management. But the company has not contacted any potential target business yet or had any substantive discussions with respect to any acquisition. Hence without knowing the future operations of the company it is not advisable to lay a positive stance.