SPAC Acquisition Strategies Offering Flexibility

SPAC Acquisition Strategies Offering Flexibility

A Special Purpose Acquisition Company (SPAC) can be used for many kinds of deals. SPACs are often compared with an Initial Public Offering (IPO) as both are options for taking a private company public. While this is a somewhat fair comparison, it overlooks the level of optionality and feasibility that a SPAC gives to its sponsors and institutional investors.

Unlike an IPO, a SPAC can be used specifically to take a private company public, but it also gives investors the option to buy a few companies, and then list the companies publicly via a reverse merger. A SPAC also has the advantage of being funded in multiple rounds and giving institutional investors a lot of control over how their capital is invested.

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Important note:
Shanda Consult is not offering and/or providing investment advisory services in the sense of regulated investment advisory services as per respective EU Directives and their implementation into national law of EU Member States. Instead, Shanda Consult offers SPAC Project Management services and consults regarding the general principles of US SPACs and their business structuring. Any investment, legal and financial advice that may become necessary for possible sponsors and investors at advanced stages will be provided by the network partners of Shanda Consult.