The blank-check companies that captivated Wall Street for a year are playing it safe with their accounting as the market slowly recovers from a financial reporting crackdown that all but halted IPOs, Bloomberg reports.
The majority of the almost three dozen SPACs that went public since the SEC’s market-jolting accounting announcement in mid-April are sticking to what they know: the same investor terms and incentives they used prior to the SEC’s warning. This means less favorable accounting that produces swings in earnings.
The upshot: SPACs may not want warrants with terms that make them report the money-raising incentives as liabilities on their balance sheets, but no one wants to be an outlier. Read more.
