Agenda – In a SPAC-Driven World, How Much Is a Board Seat Worth?

May 11, 2021

By Robin Ferracone, Angela Moe

Special purpose acquisition corporations (SPACs), also known as “blank check companies,” are non-operating publicly traded entities, created for the sole purpose of raising capital to finance the acquisition of an existing, privately held company that intends to go public. SPACs are a relatively inexpensive and expeditious way for such companies to go public. As a result, many companies are opting for the SPAC route, rather than pursuing the lengthier and more expensive process of a “front door” IPO.

There are two points at which SPACs need to recruit board members. The first is at the time of formation; the second is at the time of a merger with an operating entity. The compensation for directors is not only different by stage but also quite distinct from that of non-SPAC companies.

Read More

© 2022 Farient Advisors LLC. | Privacy Policy | Site by: Treacle Media