• A Primer on SPACs: An Explanation of the Purpose, Structure and Current Issues Affecting Special Purpose Acquisition Companies
  • August 19, 2005 | Authors: Steven B. Boehm; Cynthia M. Krus; Christopher M. Zochowski; John J. Mahon
  • Law Firm: Sutherland Asbill & Brennan LLP - Washington Office
  • Special Purpose Acquisition Companies, commonly known as "SPACs," have recently surged in popularity as an alternative to traditional acquisition vehicles, due to their ability to raise capital through the public equity markets. Formed for the purpose of acquiring one or more operating companies in a particular sector, nearly 30 SPACs filed initial public offering ("IPO") registration statements with the Securities and Exchange Commission ("SEC") between January and June 2005, compared with only 14 such filings during all of 2004. In addition, during that same period, SPACs have raised approximately $481 million in eight IPOs.