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.