The last week’s merger and acquisition activity was on the slower side compared to previous weeks, with only a handful of billion-dollar deals being announced. But SPACs continued to be a point of interest. Given the prevalence and function of the SPAC, it seems high time to consider what happens after the SPAC is formed. 

In the life cycle of a SPAC, or special purpose acquisition company, the next step after getting funding and going public is making the acquisitions. Once it has identified a target, negotiations begin much like a standard M&A deal, where the SPAC is the buyer. All that usually takes place within two years of the SPAC’s creation.