SPAC Structure and IPO Alternative

This topic tests whether you understand an alternative route to the public markets, including the roles of the sponsor, the investors, and the target company. Interviewers ask about SPACs because they combine equity financing, capital raising, valuation, and M&A style negotiation in a structure that has become increasingly relevant in capital markets discussions. A strong answer should explain the basic mechanics, the cash held in trust, and why a company might prefer this path over a traditional IPO or other listing method, without getting lost in market jargon.