A potential post-Brexit game-changer for London SPAC listings
20 May 2021
A potential post-Brexit game-changer for London SPAC listings
Mooted rule changes to facilitate SPACs seek to give the City a boost while avoiding a race to the bottom, explains Marcus Young
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In the corporate world, one of the buzzwords of the past year has been SPACs – short for special purpose acquisition vehicles. In a nutshell, SPACs are publicly traded companies formed for the purpose of effecting an acquisition of one or more businesses.
The SPAC structure has been around for decades; but exploded in popularity in the US during the Covid-19 pandemic as their advantages – primarily speed and increased deal certainty – made them the structure of choice in volatile markets.