Special Purpose Acquisition Companies (SPACs) FAQ

In brief: The rise of special purpose acquisition companies ( SPACs), now involving hundreds of companies and billions of dollars every year, has created a broadening chain of opportunity. Investors seeking returns, private companies seeking exits, and directors seeking boards have all gravitated to this form of blank check company. But SPACs are not without their risks. This FAQ defines what SPACs are and explains the rules governing both buyers and sellers. It includes a typical SPAC timeline and a glossary. 

This FAQ can provide directors with valuable insights about SPACs:  

• Gain a deeper understanding of the reasons for the recent SPAC boom. 
• See how and why you might consider getting involved with SPACs.
• Learn the rules for SPACs and understand how SPACs are financed.
• Gain insight into what board service entails during both the SPAC and the de-SPAC periods. 

Most relevant audiences:  CEOs and boards of private companies, individual directors seeking new boards, and general counsel