Are SPACs legitimate investment vehicles in the federal sector?
Investors ponied up over $40 million for Fortress America shares this summer. With its shared trading upon the IPO, the company is now searching for its lead acquisition. A highly motivated buyer, the Company seeks sellers with dual use applications (government and commercial). Fortress America focuses on firms that support disaster and attack mitigation, including Planning, Prevention, Response and Recovery. What makes SPACs noteworthy, including Fortress America, is the requirement to acquire another firm within 18 months of the IPO with a market value of at least 80% of the then net assets of the company. If no deal is struck, then the company will have to return the raised capital to its investors. Good news for selling companies that want a motivated buyer. The hitch is that the buyer will probably have to accept some largely illiquid stock from Fortress America as part of its consideration. For the right seller, they immediately become a public company and benefit by having acces
