Sally Kohn: I completely agree that the incentives don't really seem to be aligned. You know, what you typically hear or read in the news is that SPACs are risky speculative investments where you can lose a lot of money. There are actually very few SPACs that have zero revenue and if they are, they're typically SPACs more like drug development, which you also see in IPOs. She says it's a mistake not to look at the aftermarket as a potential value opportunity but there'll be a lot of stones you have to turn over before you may find one.
David Sherman talks all about SPACs (special purpose acquisition company), why some companies would prefer to IPO through a SPAC, and much more!
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro
01:42 - What SPACs are and how they work.
09:16 - Why some companies would prefer to IPO through a SPAC rather than the traditional IPO process.
15:27 - Why the incentive structure of the SPAC IPO process is sub-optimal.
31:09 - How pre-merger SPACs offer an interest risk/return profile.
53:21 - David’s thoughts on the overall current market environment.
And much, much more!
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
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