SPACs provide companies with another tool to ensure liquidity and create valuable shareholder returns. But if you are considering this route over an IPO, there are some things you need to keep in mind to ensure a smooth process. Learn everything there is to know about SPACS in this video episode.
Drew Hamer joins the show this week to explain how SPACs work and why they are here to stay. A SPAC, or a Special Person Acquisition Company, works a lot like a merger.
A SPAC is an entity that is created with cash. It takes the money and puts it in a trust so that the investors can’t lose their investments. But knowing this, why should you bother going the SPAC route, rather than the traditional IPO?
When you’re looking at evaluating an IPO versus a merger or other options, the beauty of the SPAC is that it provides you an opportunity to do things differently than when embarking on a traditional IPO.
If everything is moving, and you have multiple years of high growth, and that growth is expected to continue, then a traditional IPO may be right for you.
But if you’re just getting started, or maybe have come off of some rocky times, the SPAC route may be right for you.
Want to hear why? Tune in and listen to Drew’s entire interview, and visit our blog to learn more about the future of spacs.
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