SPACs went up, then down, but they’re not out

NY Times – In a story about Special Purpose Acquisition Companies (SPACs), Healthy Markets Executive Director Tyler Gellasch is quoted saying that he “believes that not all SPACs are bad, but the guaranteed remuneration for sponsors can reduce the incentive to pursue high-quality target companies, paving the way for bad outcomes. It seems pretty clear that SPAC merger negotiations tend to follow three rules: don’t ask, don’t tell, and don’t fight too hard,”he said. That’s not a process that’s likely to end up with a lot of strong public companies or happy long-term investors.” (Full Story).

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