Private-company CFO considerations for SPACs

Investors typically evaluate businesses based on several factors, including the management team, but those who back special-purpose acquisition companies (SPACs) are betting primarily on management’s credibility, capability, and experience. That’s because SPAC IPOs approach investors before they have any commercial operations. SPACs reverse the traditional IPO process, going public first with a well-regarded executive or team raising money whose intention is to identify and acquire a private…

Investors typically evaluate businesses based on several factors, including the management team, but those who back special-purpose acquisition companies (SPACs) are betting primarily on management’s credibility, capability, and experience. That’s because SPAC IPOs approach investors before they have any commercial operations. SPACs reverse the traditional IPO process, going public first with a well-regarded executive or team raising money whose intention is to identify and acquire a private…

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