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Mergers & Acquisitions,
Corporate

Sep. 16, 2020

Key considerations for targets in negotiating purchase terms with SPACs

There has been a bevy of special purpose acquisition company initial public offerings in the last three years, resulting in frequent and high-profile mergers, or business combinations that have gripped the attention of investors from institutional private equity and venture capital, to retail traders alike.

Joshua DuClos

Partner
Sidley Austin LLP

Key considerations for targets in negotiating purchase terms with SPACs
Shutterstock

The SPAC (special purpose acquisition company) trend was well in the making prior to the latest round of marquee deals. However, there has been a bevy of SPAC initial public offerings in the last three years, resulting in frequent and high-profile SPAC mergers, or business combinations that have gripped the attention of investors from institutional private equity and venture capital, to retail traders alike.

As a result, a new cadre...

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