SPAC mania is still going strong, but it has raised new concerns about potential high risks to individual investors and even speculation of a possible bubble, ABC News reports.
One economist said the incentives of the sponsor to do its due diligence in vetting a potential target company “are fairly perverse.” Because both the sponsor and the target company likely want the merger to happen for financial reasons, a sponsor company is “not really going to look to turn up problems,” the economist said. Read more.
