By Monica E. Oss Up until a few months ago, I didn’t know what a SPAC was, and didn’t care. But what a difference a couple months make. SPAC stands for special purpose acquisition company. A SPAC is a non-operating shell company created to make an initial public offering (IPO), with the purpose of using the financial IPO proceeds to acquire privately held companies. What is the benefit of a SPAC? Private companies are willing to be acquired by SPACs because it is a more flexible and less burdensome way of raising capital than going public through an IPO. An IPO requires considerable expense and is a cumbersome…
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