What is a special purpose acquisition company SPAC?
Despite its intimidating name, a Special Purpose Acquisition Company SPAC is merely a different process through which a company goes public. The different process presents benefits and opportunities for both seasoned and novice investors, and allows companies another channel for going public, one where the acquired company can benefit from the managements specific expertise of valuation and taking companies public. However, similar to a regular IPO process, a SPAC raises capital from investors, needs an underwriter, issues different types of stock shares, fills out Securities and Exchange Commission SEC forms and, at the end of the day, creates a new public company. However, within the same components, there are also differences.