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SEC Addresses Five Important Considerations For SPAC Business Combination Transactions - Corporate/Commercial Law


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On March 31, 2021, the Securities and Exchange Commission (SEC)
provided public statements from Acting Chief Accountant Paul Munter and from
the Division of Corporation Finance addressing
Special Purpose Acquisition Companies (SPACs). Although each of the
statements were distinct and addressed different issues, the
primary focus of both was to raise awareness of critical
accounting, financial reporting and governance considerations that
a private operating company should carefully consider and address
prior to consummating a business combination with a SPAC.
SPACs are shell companies that raise capital through an initial ....

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