A practical guide to IPO a SPAC Wall St

A SPAC (Special Purpose Acquisition Company) is an empty or almost empty company, with no commercial operations that is formed strictly to raise capital through an Initial Public Offering (IPO) for the purpose of acquiring an existing company.

Why companies are joining the SPAC boom?

Companies typically pursue an initial public offering to raise capital, provide shareholder liquidity, create brand awareness and obtain resources to further expand their business. Increasingly, companies across all sectors are considering mergers with special purpose acquisition companies (also known as SPACs), rather than a traditional IPO, to achieve these goals. This trend will likely continue as a growing number of major private equity (PE) firms, venture funds and operators from more SPACs. SPACs are “blank check” companies created solely to raise capital through an IPO in order to merge with private companies. By merging with SPAC sponsor, firms can access liquidity via the public market.