What is a SPAC?

Welcome to The SPAC Podcast. Before we dive into our SPECIAL series, let’s answer the obvious question: what is a SPAC?

A SPAC is a Special Purpose Acquisition Company — a publicly traded shell corporation created for the purpose of acquiring a private business and taking it public. SPACs raise capital through an IPO without a specific acquisition target in mind, which is why they’re often called “blank check companies.”

The structure allows sponsors — often experienced investors or executives — to raise funds in advance, with the promise to identify and merge with a high-potential company later. SPACs typically have 18–24 months to complete an acquisition, or else they must return the funds to investors.

In today’s markets, SPACs have become a creative and flexible alternative to traditional IPOs. 

In this series, we’re going to walk through each of the seven key stages of a Special Purpose Acquisition Company — from formation to going public — using the mnemonic SPECIAL:

S – Sponsor Setup

P – Public Raise (IPO)

E – Evaluate Targets

C – Combination Planning

I – Investor Engagement

A – Approval Process

L – Launch as a Public Company

Each episode will take a closer look at one of these stages — clearly and concisely — to help you understand how SPACs work from start to finish.

Let’s get started.