The term SPAC stands for "special purpose acquisition company," which are non-operating, publicly listed companies whose purpose is to identify and acquire a private company using funds raised during an IPO. SPACs can be attractive to some private companies as an efficient means to raise growth capital and achieve public status on an accelerated timeline. Private companies can negotiate the valuation of their company with the SPAC management, removing some of the cost and uncertainty associated with a traditional IPO. Following the merger, the acquisition target has publicly-traded stock and access to public market financing.