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Can someone here please explain the motivation behind all these SPAC transactions? Is it just to avoid the red tape and S-1 of IPO filing?
by enahs-sf 6y ago
Can someone here please explain the motivation behind all these SPAC transactions? Is it just to avoid the red tape and S-1 of IPO filing?
- ianai 6y agoIve read on HN SPAC mergers are good for “clearing out saints” ie firing people otherwise harder to terminate. It should in theory minimize volatility of the price after the merger as opposed to an IPO.
- lmm 6y agoAn SPAC lets the company negotiate a firm, fixed price, whereas an IPO is (semi) exposed to the market. Of course that comes at a cost - the company accepts a lower average price in return for reducing its risk. You can understand why that has become a bit more appealing in the last few months.