If a firm goes public via its acquisition or merger with a special purpose acquisition vehicle (SPAC), instead of an initial public offering (IPO), it may be subject to very different rules around disclosure and business practices.
Depending upon the jurisdiction, this can mean risks to investors are less visible, or business models may be more opaque. Jonathan Price, visiting lecturer at the London School of Business and Finance, outlines key points that investors need to consider when picking equity in the primary markets to Ruth Emery.
