Planning With SPAC SecuritiesPlanning With SPAC Securities

Capital markets statistics show it: The Special Purpose Acquisition Company (SPAC) is the new initial public offering.¹ For advisors accustomed to pre-offering discounting opportunities in previous booms, that raises the obvious question—can the current rush to take companies public, albeit through a different route—also be turned into estate-planning gold? 

Not to spoil the rest of the article, but there are many opportunities, including for SPAC sponsors, investors and the original shareholders in the private company going public through the SPAC transaction. 

SPAC Facts

A typical SPAC deal begins when a sponsor, almost always a limited liability company (LLC), starts a new corporation (the SPAC) by purchasing its common stock for $25,000...