Special purpose acquisition companies (SPACs) have been one of the success stories of recent years. They have attracted huge volumes of investment as professional and retail parties invest through an initial public offering (IPO) in a ‘cash shell’ company with a mandate to find a suitable unlisted acquisition target. The company then typically merges (often by a reverse takeover) with its target in a de-SPAC transaction, creating a new listed business.

In this article for Financier Worldwide Magazine, Margaret A. Dale and Dorothy Murray discuss the rapid growth of SPACs and the increased scrutiny from regulators and investors.