Special Purpose Acquisition Companies (SPACs)

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.