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An Introduction: Special Purpose Acquisition Companies

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Special Purpose Acquisition Companies (“SPACs”) are companies formed to raise capital in an initial public offering with the purpose of using the proceeds to acquire one or more unspecified businesses or assets to be identified after the IPO.

This primer provides an overview of SPACs, including a comparison to an operating company IPO, their capitalization and economic structure, governance considerations, and the post-IPO target acquisition and subsequent De-SPAC process.

 

This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.