SPACs: Business, Accounting & Tax Considerations
Although the COVID-19 pandemic has caused significant economic hardship for many businesses, SPAC deals have seen a resurgence and are accelerating at a record-breaking pace. For investors, the potential for returns are higher than ever given the access to capital, low interest rates, and the ability to move quickly to close an acquisition. This provides target companies with the potential to grow exponentially despite the economic downturn as companies seek access to additional capital.
Although SPACs provide several advantages to going public, notably in terms of timing and cost, they are not without risk.
In this whitepaper, we’ll examine the SPAC trend and its advantages as well as relevant accounting and tax considerations for SPACs to bear in mind as they navigate this express path.
Complete the form below to download MFA’s whitepaper, SPACs in the Spotlight: Business, Accounting & Tax Considerations for Special Purpose Acquisition Companies.
Material discussed in this communication is meant to provide general information and should not be acted on without obtaining professional advice tailored to you or your company’s individual and specific needs. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used by any person or entity, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. This information is for general guidance only and is not a substitute for professional advice.
The information contained herein should not be construed as personalized investment advice. Investment in securities involves the risk of loss, and past performance is no guarantee of future results. There is no guarantee that the views and opinions expressed in this document will come to pass. Historical performance results for investment indexes and/or categories generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment-management fee, the incurrence of which would have the effect of decreasing historical performance results. There can be no assurances that your portfolio will match or outperform any particular benchmark.
Information presented is believed to be factual and up-to-date; however, MFA makes no guarantee as to accuracy, completeness, suitability, or validity of any information within this communication and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages from its display or use. Any forward-looking statements are believed to be reasonable; however, MFA gives no assurance that such expectations will prove to be correct.