Can SPACs Ensure M&A Success?

Item

Title

Can SPACs Ensure M&A Success?

Alternative Title

Advances in Mergers and Acquisitions

Creator

Kamal Ghosh Ray
Sangita Ghosh Ray

Date

27 June 2017

Description

Special purpose acquisition companies (SPACs) are created by a group of specialists to pool funds for financing future acquisitions within a specified time limit. SPACs are basically “shell” companies with no operations and business, assets or liabilities but they acquire the status of public corporations through initial public offerings (IPOs). The SPAC founders use the IPO funds to acquire a potential target. They are generally found to be successful to close an mergers & acquisitions (M&A) deal but they may not bother to ensure perpetual success of the acquired entity for a long time. In many countries, “shell” companies are characterized as the “bad boys” of the corporate world but they can be used for long-lasting successful M&As due to their inherent strengths, if they play the role of protagonists and “good guys” as SPACs. This chapter examines how SPACs can be used as special vehicles to ensure worthy and successful acquisitions to create sustainable corporations.

Language

English

Place

Emerald Publishing Limited

Publisher

Emerald Publishing Limited

Subject

Mergers and Acquisitions

isbn

978-1-78714-693-8
978-1-78714-692-1

issn

1479-361X

doi

uri

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