This episode of the Tax Beat focuses on SPACs – Special Purpose Acquisition Companies – that are taking the investment world by storm. SPACs are a new way to get private companies to the public equity market.  Nearly half of all IPOs in 2020 were SPACs and the trend is accelerating in 2021. Management teams and sponsors start with a new, shell corporation listed on a public stock, raise funds by selling shares to the public, and then find and acquire an operating company. Sounds straight forward, but the transactions details and tax consequences can be far from simple. Tax Beat hosts, Brooks and Sarah, discuss the tax challenges for SPACs with Cherry Bekaert’s Chris Truitt, Partner and Leader of the Firm’s Tax Transaction Advisory Service team, and Barry Weins, Director, specializing in transaction tax services.

The conversation includes:

  • 1:49: Overview of SPACs
  • 6:48: Responsibilities of Founders and Sponsors
  • 10:08: Tax Issues of De-SPACing
  • 12:49: Tax Considerations for Target Companies
  • 20:03: Impact of Location on Taxes

Related Insights: 

View All Tax Beat Podcasts

 

Brooks E. Nelson

Tax Services

Partner, Cherry Bekaert Advisory LLC

Sarah McGregor

Tax Services

Director, Cherry Bekaert Advisory LLC

Christopher J. Truitt

Transaction Tax Services Leader

Partner, Cherry Bekaert Advisory LLC

Barry Weins

Tax Services

Director, Cherry Bekaert Advisory LLC

Past Episodes

Podcast

October 5, 2024

25:22

Speakers: Jim Holman, Steve Holliday

Listen to our 'Year of Efficiency' podcast to explore how efficiency drives innovation and growth with real-world examples from leading technology companies.

Podcast

September 17, 2024

11:45

Speakers: Christopher J. Truitt, Martin Karamon, William W. Billips, Timothy Doran

Learn how transferable energy tax credits under the Inflation Reduction Act offer private equity funds new tax planning opportunities and innovative deal structuring.

Podcast

September 10, 2024

18:41

Speakers: Marci Spivey, Michael G. Kirkman

Learn how the federal estate and gift tax exemption sunsetting in 2025 impacts your assets and why early estate planning is crucial to minimize future tax.