The extent of my knowledge is that SPACs are useful tools to get a company to go public. I know that they look for "targets" to take public, and they deal with all the outreach and financial structuring.
What I don't know is how the deals are actually structured, how they are valued, and what the risks are.
1) Deal structuring
Do SPACs end up acquiring private companies or do they get acquired? Or does that kind of depend on how the capital structure works out?
Essentially, if I'm investing in a SPAC, am I making some sort of Merger Arb move? How is SPAC's valuation determined before/after they announce the target?
What other factors besides the person/team behind it go to valuating SPACs?
What information is SPACs required to reveal?
How is the valuation of the target determined?
Any other risks?