SPACs – Special Purpose Acquisition Companies

SPACs or Special Purpose Acquisition Companies are an alternative to the traditional IPO route of going public. Unlike traditional IPOs, SPACs are shell companies formed specifically to acquire existing businesses, and are designed to take companies public through a merger or acquisition.

How SPACs Work:

1. Formation and IPO: a SPAC is a newly formed shell company established by a group of experienced sponsors, typically financial and business professionals, with no business or assets other than the funds raised during the formation and an initial public offering(IPO).
2. Target Acquisition (de-SPAC): The SPAC’s sponsors actively seek out a suitable merger candidate and negotiate the terms of the merger or acquisition agreement..
3. Investor Approval: After approval by the SPAC’s investors, the target typically merges into the SPAC, resulting ina publicly traded

Our attorneys have in-depth experience in all aspects of SPAC transactions, including – forming, financing and representing SPACs and their sponsors and underwriters through the formation and IPO process;

• M&A/de-SPAC business combination transaction: advising SPACs or target companies throughout the acquisition and merger process and potential simultaneous PIPE transactions, including the drafting and filing of a proxy statement and all associated corporate and securities documentation.
• Post-Acquisition Services: We also act as general corporate and securities counsel to the publicly traded company after the acquisition.