Board Director Dilemmas—Back the SPAC?

This case focuses on a board director of a diversified holding company. The firm’s longtime CEO had always exhibited a cautious, methodical approach to growth. Now, the CEO is raising the idea of joining with a special purpose acquisition company (SPAC) to spin off part of the business as a separate company. This strategy shift—a spinoff, use of a SPAC, and accumulation of cash for larger acquisitions—was a dramatic shift for the company, and the board director must consider how to respond.