Fenwick corporate counsel Nicolas Dumont was quoted in a Law360 article about the increasing popularity of SPACs, or blank-check companies, as an alternative to traditional IPOs and mergers.
SPACs are shell entities led by management teams that raise funds through an IPO in order to acquire a private company and take it public. A hybrid of an IPO and a merger, blank-check deals have accelerated recently, Law360 reported.
“It really shows that there is a strong interest in completing a deal and minimizing the risk at a shareholder vote,” Dumont told Law360. "They have said explicitly that they are interested in so-called mature unicorns. This type of deal may be interesting for a company that has that profile that may not want to wrestle with the inherent unpredictability of the IPO market, especially these days."
The full article is available through the Law360 website.