John Washlick, shareholder in the firm's Healthcare section, is quoted in the BioSpace article, "SPACs Soar as Fast, Hassle-Free IPO Alternatives for Biotech Companies" about the resurgence of special purpose acquisition companies.
SPACs have been called blank check companies because there is no operating company and no business plan – only the intention to acquire or merge with an unidentified company within two years.
“SPACs are shell companies,” not shell games, John R. Washlick, a leading healthcare mergers and acquisitions (M&A) attorney and transactions specialist at Buchanan, Ingersoll & Rooney, told BioSpace. “They have no operating businesses. They raise their own IPOs, then raise millions of dollars with the purpose of acquiring a private operating company. As a SPAC, you have nothing to disclose, so there’s a lot less scrutiny.”
The IPO process is faster, too.
“A SPAC can go through the IPO process in a few months, versus the year it often takes a company with operations to file the disclosure and financial statements and undergo scrutiny by the SEC before going public,” he said.