This is a practical guide to IPO a SPAC on Wall St. A Special Purpose Acquisition Company (SPAC) 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. This must-read book shares crucial information about why companies are electing to join 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, rather than a traditional IPO, to achieve these goals. This trend will likely continue as a growing number of major private equity firms and operators form more SPACs. By merging with a SPAC, firms can access liquidity via the public market.