A SPAC is a fast route to being public but there are at least four big things to consider before joining one.

First, it is not a liquidity event. You generally cannot sell your equity for at least 6 months after you merge into one.

Second, since the SPAC principals have equity in the SPAC and take fees for managing it you will likely see a discount to the valuation you were worth going into the deal.

Third, CEOs of merged companies find themselves spending more time managing investor short run expectations and less time building longer term value of their companies.

Forth, it costs a lot of money to be a public company and those costs deduct from the profit metric investors use to value your company’s stock.

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