SPAC Transactions: The Basics to Know
Insights 
Olivia Y. Wang · July 11, 2026
“SPAC” stands for “special purpose acquisition company,” a listing vehicle created for the purpose of taking one or more private companies (the “target”) public through a business combination (the “de-SPAC”) within a specified timeframe (typically 18-24 months).
SPAC activities have experienced significant ups and downs in recent years, reflecting both the cyclical nature of equity capital markets and the ongoing evolution and normalization of the product. Once dismissed as a backdoor to the public markets and tarnished by the excesses of the 2020-2021 boom, SPACs have been quietly rebuilding momentum. Serial SPAC sponsors with proven track records are succeeding, and the average redemption rates of recently completed de-SPACs are significantly lower than during the boom years. When used correctly, SPACs play a vital role in public capital formation and democratization.
Due to their complexity, careful legal and financial planning and structuring by experienced professionals are critical to successful SPAC transactions. For founders considering the public markets, investors evaluating SPAC opportunities, and potential sponsors considering launching a SPAC, this article provides a detailed overview of how SPAC transactions work, the historical and current market landscape, advantages and disadvantages compared to other listing methods, common misconceptions, key considerations for deal participants, and the road ahead in 2026.
Read the full alert here:
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If you have any questions about this Client Alert, please contact Olivia Y. Wang at olivia.wang@rimonlaw.com or the Rimon attorney with whom you normally consult. Olivia has significant experience advising clients on a wide range of corporate and securities matters and is one of the most experienced capital markets attorneys advising Asian companies on SPAC deals. Before joining Rimon Law, Olivia worked at the Beijing and Hong Kong offices of Kirkland & Ellis from 2017 to 2024, where she led the securities law aspects of most of the firm’s SPAC transactions in Asia during that period, and received her J.D. from the University of Virginia School of Law, where she was a Karsh Scholar and Salzburg Cutler Fellow. A Chinese version of this article is available upon request.