What to Think About When SPACs Go Shopping

London corporate associate James Ellis-Rees authored an article for Acquisitions Daily titled “What to think about when SPACs go shopping,” which comments on investment in special-purpose acquisition companies (SPACs) in a post-pandemic world.

Ellis-Rees notes that the Financial Conduct Authority amended the Listing Rules with effect from August 2021 with the aim of providing “a more flexible regime for larger SPACs…potentially resulting in a wider range of SPACs listed in the UK, increased choice for investors and an alternative route to public markets for private companies.”

The article highlights how the new flexibility and the associated safeguards will make the larger SPACs a more compelling investment proposition and what investors should be considering in relation to the acquisition stage of the SPAC lifecycle, such as speed and price certainty, acquisition targets, disclosure obligations, shareholder approval and more.