SPACs 101: Everything You Need to Know [Sponsored]

// Special purpose acquisition companies (SPACs) are one of the hottest topics in corporate and M&A law today. A SPAC is a company that is formed for the sole purpose of raising capital through an IPO or for acquiring or merging with existing companies. Due to existing safe harbor protections and a lack of regulations, SPACs have come to widely be known as “blank check” companies.

Accordingly, SPACs have recently come under increased SEC scrutiny, with the agency proposing a number of new policies and regulations that would require more stringent disclosures for companies being acquired, relating to conflicts of interest, future financial projections, and more, aimed at better protecting potential investors.

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The legal landscape surrounding SPACs is constantly shifting. To help you understand more, PLI is offering a one-day program, The SPAC Life Cycle: Business, Legal and Accounting Considerations Forum 2022, which will outline the purpose of SPACs and address the important business, legal, SEC reporting, and accounting considerations that arise in each phase of the complex SPAC lifecycle.

The key things you need to understand when dealing with SPACs include:

• How SPAC transactions are used as a vehicle for private companies to raise capital and become privately traded 
• How SPACs differ from traditional IPOs, and the pros and cons of each
• The typical lifecycle of a SPAC, from formation through SEC registration and IPO, and related legal issues
• The SPAC IPO transaction process
• Accounting and SEC reporting considerations
• Identification of an acquisition target
• Accounting and reporting requirements after an acquisition is complete
• The major SEC enforcement and litigation developments relating to SPACs

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As their use becomes more common, SPACs will continue to garner increased attention in the corporate and M&A spheres. In turn, we can expect to see even more attention and regulation from the SEC and other regulatory bodies in the future. Sign up for the program today to gain a comprehensive introduction to this complex new area of law.

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