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Alex Gravish By Alex Gavrish, Etalon Capital Ltd; author of Story Investing.

After the huge wave of SPACs that followed in 2019-2021, we warned investors but also emphasized the fact that SPACs possess certain characteristics similar to spin-offs, and with due caution, attractive investment opportunities could be found in this niche as well.

The warning about the pain to come materialized in the end, and the pain came.

According to a recent Bloomberg article, The De-SPAC Index, a basket of companies that completed their tie-ups, has crashed by 67% and more than 700 SPACs are either on the hunt for deals or racing the clock to close ahead of deadlines.

Merger or acquisition by SPAC vehicle of an operating business represents an important corporate event. Similar to spin-off it becomes an important turning point in the company's story.

We want to emphasize two important aspects that we believe are important for deciding if a SPAC might work well for investors.

First is the size of the SPAC vehicle versus the value of the company being merged with the SPAC. This is even more important than the dilution from warrants or mechanics of SPACs, as investors usually think.......................

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