Matt Stamski Discusses the Rise in SPACs and Whether They’re Here to Stay

Daily Camera addressed the special purpose acquisition company (SPAC) boom in the article “What the rise in SPAC’s popularity with Boulder businesses means for economy, investors,” and turned to Boulder corporate partner Matt Stamski for insight on the future of SPACs.

“[SPAC] is certainly a buzzword, but it’s also certainly more than buzzy,” said Stamski. “There’s more to it than that. I cut my teeth in the ’90s working in the dot-com bubble. There are various bubbles that have happened since then. I’m not sure this is a bubble. This is just a means to access the public markets that is less cumbersome than traditional methods.”

Stamski also highlighted that it’s too soon to predict the impact of the recent SEC guidance on SPAC accounting. For companies that have already completed the merger process, he said, the new guidance should be immaterial. But for businesses in the middle of the process, the SEC may have forced them to restate their financials.

“For market professionals that are living and breathing this today, it’s a pretty severe annoyance,” Stamski noted. “We are representing companies and investors right now that are conducting the analysis of, ‘Do we need to restate or take another corrective action?’”