Dynasty Resources Reverse Merger and Spac


by m.jeya - Date: 2008-08-07 - Word Count: 295 Share This!

A special purpose acquisition corporation, commonly known as a "SPAC," and formally a "development stage company," is generally incorporated with the primary objective of raising funds through a public offering of its securities primarily for purpose of acquiring one or more operating companies. SPACs, Special Purpose Acquisition Companies, are investments vehicles that allow public investors to invest in areas sought by private equity firms. The SPAC must sign a letter of intent for a merger or an acquisition within 12 to 18 months of the IPO. Special Purpose Acquisition Companies raise blind pool money from the public for an unspecified merger, sometimes in a targeted industry.

 

A SPAC is similar to a reverse merger. However, unlike reverse mergers, Special Purpose Acquisition Companies come with a clean public shell company, better economics for the management teams and sponsors, certainty of financing/growth capital in place, a built-in institutional investor base and an experienced management team. SPACs are essentially set up with a clean slate where the management team searches for a target to acquire. This is contrary to pre-existing companies in reverse mergers.

 

Special Purpose Acquisition Companies Corporate finance are shell or blank check companies that have no operations but that go public with the intention of merging with or acquiring a company with the proceeds of an initial public offering. A SPAC is similar to a reverse merger. However, unlike reverse mergers, SPACs come with a clean public shell company, better economics for the management teams and sponsors, certainty of financing/growth capital in place, a built-in institutional investor base and an experienced management team. SPACs are set up with a clean slate where the management team searches for a target to acquire. This is contrary to pre-existing companies in reverse mergers. Please visit online http://www.dynastyresources.net in NewYork city.


Related Tags: finance, financial, corporate, venture capital, corporate finance, corporate consulting, spac, initial public offering, ipos, reverese mergers, finance investment, corporate financing, corportate finance, corporate finance services

Representing the corporate finance in the website www.dynastyresources.net

Your Article Search Directory : Find in Articles

© The article above is copyrighted by it's author. You're allowed to distribute this work according to the Creative Commons Attribution-NoDerivs license.
 

Recent articles in this category:



Most viewed articles in this category: