No salaries, finder's fees, or other cash compensation are paid to the management team prior to the business combination, and the management team does not participate in a liquidating distribution if it fails to consummate a successful business combination. In many cases, management teams agree to pay for the expenses in excess of the trusts if there is a liquidation of the SPAC because no target has been found.
No salaries or cash compensation are provided to the management team before the business combination, and they do not receive a liquidating distribution if it fails. Management teams often agree to pay for excess expenses from trust funds in the event of an SPAC liquidation without a successful acquisition.