Special Purpose Acquisition Company (Spac)? Would You Use This?

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05/03/2019 Redacted Redacted

searcher

SPECIAL PURPOSE ACQUISITION COMPANY (SPAC)? WOULD YOU USE THIS?

SPAC's can be a very good option  for your strategy to build out your fund. Creates a situation for significant risk mitigation while simultaneously creating a much more attractive proposal to potential LP's / investors. What do you guys think? Who has used this before? Share your experience. 

2 likes 112 views 4 comments

searcher Massachusetts Institute of Technology - MIT Sloan School of Management Johns Hopkins University - 05/03/2019

Deal size might be out of scope (too high) but I'm very interested in this approach and have considered a SPAC for a separate acquisition play on a target generating $100M+. Great question!

like reply | 1 like

searcher - 05/03/2019

I think it's great for a strategy I am using right now. Made some tweaks to how it's traditionally structured but the concept is solid. And I agree that it would be better for higher ticket deals and funds with the key being the strategy.

like reply | 0 likes

searcher Purdue University - 08/05/2020

Thanks for your comments guys! Since you've posted, is there anything else worth sharing about establishing, using it as a vehicle, or pitfalls of using an SPAC? Thanks!

like reply | 0 likes

searcher Stevens Institute of Technology - 08/05/2020

Deals have to be large. Also SPACs mostly are public companies. There are lots of administrative, compliance and reporting requirements. That usually means that the fees for set-up, administration and reporting are very high. Just my experience on a very basic level.

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