Article

SPACs and De-SPACing: Considerations for Going Public Through a Combination with a SPAC

By Brian D. Short and David B. Gross
April 27, 2021
In the last year, there has been an unprecedented surge of special purpose acquisition company (SPAC) formations. This has attracted a lot of attention to the SPAC space, from the sponsor side (traditional private equity firms, athletes, and celebrities) to the investor side (hedge funds and retail traders). Vast sums of capital and new found popularity have attracted private companies looking for potential exits or additional sources of capital. In addition, the Securities and Exchange Commission (SEC) recently expressed a strong interest in these vehicles.

While merging with a SPAC, a process known as de-SPAC, may offer  a compelling alternative for a private company, there are some unique considerations that companies should be cognizant of and weigh while contemplating a combination.

Our article provides an overview of SPAC and de-SPAC transactions and key considerations for companies contemplating a combination with a SPAC. Read the article here

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