what happens if a spac does not merge 
spacs have a specific time frame in which they need to merge with another company and close a deal this time frame is usually 18 to 24 months if a spac cannot merge during the allotted time then it liquidates and all funds are returned to investors the bottom linea special purpose acquisition company spac is a type of investment vehicle that is created with the purpose of raising capital through an initial public offering ipo to acquire a private company spacs are sometimes called blank check companies because they are formed without a specific acquisition target in mind once the spac has raised sufficient capital through the ipo it uses the funds to search for and acquire a private company which is then taken public through a reverse merger this allows the private company to access the public markets and raise additional capital without going through the traditional ipo process while a popular alternative to traditional ipos the spac market has seemed to sour in recent years investopedia does not provide investment advice the information is presented without consideration of the investment objectives risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors investing involves risk including the possible loss of principal 