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Is this that different from a SPAC?

• JumpCrisscross 4y ago
  > Is this that different from a SPAC? SPACs are reverse mergers with bells and whistles. Reverse merger just means a private company mergers with a public company, the shell, where the motivation for merging is that the shell is public. Shells are usually vestiges of a failing or failed company. They went public because they thought they would idk sell sandwiches, they didn't sell enough sandwiches, so now their most valuable asset is the listing itself. When they are bought, there is no cash or goodies for the new owner to control. If anything, the less there the better. SPACs go public with the ex ante intent of merging with a private company. When they merge, they dangle the promise of their pool of cash to potential acquirers. It's more deliberate, complicated and lucrative (for the bankers).