Introduction
While traditional initial public offerings (IPOs) have become risky, difficult and vulnerable to conflict as to the issuer s valuation, a merger or combination with an IPO-funded special purpose acquisition company (SPAC) offers an alternative. The recent popularity of SPACs can be linked to, among other things, their structure, which provides advantages and benefits for SPAC investors, SPAC sponsors and private companies that wish to raise public funds. Compared with an ordinary IPO, a SPAC provides the target with more certainty of closing at the expected value and allows the target to access public markets for liquidity and future fundraising activities.