It’s the hot new financing trend for ad-tech companies hoping to go public, but what exactly is a SPAC?<\/p>\n

Special Purpose Acquisition Companies (SPACs) are becoming a popular way to do an IPO. It is “essentially a shell company set up by investors with the sole purpose of raising money through an IPO to eventually acquire another company”, reports<\/a> CNBC.<\/p>\n

It’s how Taboola finally went public<\/a> this summer, and how AdTheorent went to market<\/a> in a deal valuing it at $1 billion.<\/p>\n

In this video interview with Beet.TV, Nick MacShane, senior managing director at M&A advisory Progress Partners, explains why the route is becoming so popular.<\/p>\n

A bigger story<\/h2>\n

“That is presenting a number of other companies that might not feel they have all the juice to go public a second option to get into the public market,” says MacShane, whose Progress Partners advised on deals including<\/a> Signal’s sale to TransUnion and RTK’s to Rubicon Project.<\/p>\n

In a SPAC, a company merges with an existing entity in a capital plan to grow the return on floatation, aiming to fund future M&A.<\/p>\n

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What is a SPAC? Explaining one of Wall Street\u2019s hottest trends (via @CNBCMakeIt<\/a>) https:\/\/t.co\/KVSlKFwnGQ<\/a><\/p>\n

— CNBC (@CNBC) January 30, 2021<\/a><\/p><\/blockquote>\n