SPACs are an alternative to the traditional IPO route of going public. They are “special purpose acquisition companies” that are designed to take companies public through a merger or acquisition. The SPAC is a newly formed shell company with no business or assets other than the funds raised during the formation and public offering process. The sponsors of the SPAC are financial and business professionals that identify a merger candidate and negotiate the terms of the acquisition agreement. After approval by the SPAC’s investors, the target merges into the SPAC and thereafter continues as a public company.
Our attorneys and clients have in-depth experience forming, financing and representing SPACs and their sponsors and underwriters. Our M&A specialists represent SPACs in the acquisition process including the drafting and filing of a proxy statement and all associated corporate and securities documentation. We also represent merger candidates and act as general corporate and securities counsel after the acquisition.