NewsNewsNews CEO Urges Caution for SPAC Market

Special purpose acquisition companies (SPAC) are gaining popularity. Our CEO Brian Bogosian explains why it might not be the right move for every business looking to go public.


January 25, 2023

Wall street and Broadway

As special purpose acquisition companies (SPAC) grow in popularity, SPAC leaders are urging caution for private businesses looking to go public in the near future.

Also called a "blank check company", a SPAC is a less complicated way for private companies to become publicly traded as opposed to an initial public offering (IPO). Typically, share allocations of IPOs are only granted to high-profile, accredited investors. While the IPO process may take years, SPACs speed up the process tenfold by letting private firms go public without filing with the U.S. Securities and Exchanges Commission (SEC), which allows everyday investors to buy shares.

As popularity grows, many successful SPACs are urging caution as the market intensifies.

"Companies, including ecommerce businesses, are looking for ways to go public as soon as possible, including looking at SPACs," said president and CEO Brian Bogosian. "But there are probably more SPACs than there are good deals to support them."

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