SPECIAL PURPOSE VEHICLE: Defined

Posted on April 12, 2025 by Dr. David Edward Marcinko MBA MEd CMP™

By dcpalter

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What is an SPV and When Do You Need One?

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A special purpose vehicle (SPV), or a special purpose entity (SPE), is a legal entity that a parent company creates to hold separate assets from the parent’s balance sheet.

Its purpose is to isolate the parent company from any potential credit or financial risk that may arise from the SPV and is often used to pursue riskier projects, securitize debt, or transfer assets.
Since an SPV is separate from the parent company, it isn’t affected by the parent’s performance, and the parent isn’t typically affected by the performance of the SPV. If the parent goes bankrupt and is no longer in existence, the SPV can carry on.

This makes an SPV bankruptcy remote. This also means that the parent company is unaffected by the loss if the SPV fails.

MORE: https://www.wallstreetoasis.com/resources/skills/strategy/special-purpose-vehicle-spv

Related: https://medicalexecutivepost.com/2024/07/26/spac-v-direct-listing-v-ipo/

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SPAC: Smack Down

Posted on February 21, 2024 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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2023 was a bad year for SPACs. 2024 may be even tougher, if the SEC has anything to say about it. Last week, the agency approved rules intended to increase investor protections around SPACs and bring their treatment more in line with that of traditional IPOs.

Special purpose acquisition companies, or SPACs, are companies that go public through IPOs with the intent of merging with or acquiring private companies, known as target companies. The target companies can then be publicly listed without having to go through an IPO. SPACs, which allow companies to go public more quickly than ordinary IPOs, became popular in 2020 and 2021. But the “SPAC boom” ended in 2022 as the market worsened, and the SEC first proposed the tighter regulations it just released. In 2023, only 31 SPACs went public, compared with 613 in 2021.

CITE: https://www.r2library.com/Resource

SEC Chair Gary Gensler, a longtime critic of SPACs, hailed the new regulations as a means of safeguarding investors.

“Just because a company uses an alternative method to go public does not mean that its investors are any less deserving of time-tested investor protections,” he said in a statement.

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SPAC Popularity Soaring in Healthcare

Posted on September 21, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Health Capital Consultants, LLC

"Todd

Todd A. Zigrang, MBA, MHA, FACHE, CVA, ASA

[President]

The popularity of special purpose acquisition companies (SPACs) has been soaring in recent years. There are 35 times as many SPACs operating in 2020 as in 2010, and these companies seem poised for greater exponential growth in the future.

While many experts are predicting a continued, rapid increase in SPACs, this article will also examine the factors that could possibly slow SPAC growth and diminish their future prospects. SPACs span several market areas, including biotechnology and healthcare; this article will review SPAC trends generally as well as healthcare SPACs in particular. (Read more…)

Your thoughts are appreciated.

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RELATED: https://medicalexecutivepost.com/2021/04/21/spac-v-direct-listing-v-ipo/

Product Details

Order Textbook: https://www.amazon.com/Financial-Management-Strategies-Healthcare-Organizations/dp/1466558733/ref=sr_1_3?ie=UTF8&qid=1380743521&sr=8-3&keywords=david+marcinko

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PODCAST: The BLANK CHECK Company?

Posted on April 21, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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DEFINITION: A blank check company is a development stage company that has no specific business plan or purpose or has indicated its business plan is to engage in a merger or acquisition with an unidentified company or companies, other entity, or person.

CITE: https://www.r2library.com/Resource/Title/082610254

Blank check companies are speculative in nature and are bound by Securities and Exchange Commission Rule 419 to protect investors.

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SPAC: https://medicalexecutivepost.com/2021/10/28/spac-v-direct-listing-v-ipo/

PUBLIC SPACS: https://stockmarketmba.com/listofcompaniesthathavemergedwithaspac.php

PODCAST: https://www.youtube.com/watch?v=OnYRxHuI10Q

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