Technical Note: No Assets No Products No Business Plan: Risks Associated with Special Purpose Acquisition Companies Harvard Case Solution & Analysis

Special purpose acquisition company (SCP) is a blank check company, which is turned on and goes public with a view to a merger or acquisition uncertain with proceeds from the initial public offering (IPO). This process is often referred to as "reverse IPO", as the company gathers equity investors to acquire, merge, or even the choice of the target company. Because there are no assets or operations at the time, investment, investors are essentially betting on the potential future of the management team. Optionality embedded in the UPP government allows investors to enter into a unique, and sometimes a good investment vehicle, which seems to have limited downside risk. But, in fact, SPACs are many risks that may not be obvious to all but sophisticated investor. A total of 228 SPACs raise $ 35.8 billion of capital since 2003, is a popular investment vehicle for further discussion of the principal risks. "Hide
by David P. Stowell, Deepa Pai 14 pages. Publication Date: 01 December 2009. Prod. #: KEL455-PDF-ENG

Technical Note: No Assets No Products No Business Plan: Risks Associated with Special Purpose Acquisition Companies Case Solution Other Similar Case Solutions like

Technical Note: No Assets No Products No Business Plan: Risks Associated with Special Purpose Acquisition Companies

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