Special Purpose Vehicle (SPV) Explained: Uses, Benefits & Risks

What is a Special Purpose Vehicle (SPV)? It's a powerful legal and financial structure used in M&A deals, startup fundraising and complex investments. In this episode, we break down what an SPV is, how it works, why you’d use one, and the legal pitfalls you must avoid. Our business lawyer Kat will take us through the details! Key takeaways: How SPVs can pool capital, clean up your cap table, and protect minority shareholders. Why SPVs are essential in mergers & acquisitions, joint ventures, and risk isolation strategies. *The biggest compliance, tax, and governance risks—and how to avoid them. Partners: www.lefitness.se Connect with Us: Website: https://www.businesslawtoolbox.com/ Instagram:   / thebusinesslawtoolbox   LinkedIn:   / business-law-toolbox   TikTok:   / businesslawtoolbox   Spotify: https://open.spotify.com/show/5G3q9X7... Time stamp: 00:00 Intro SPV 00:33 What an SPV is 01:11 Legal structure with one purpose 02:02 We walk-you through the pitfalls 02:19 EXAMPLE 04:05 How does the SPV make decisions? 05:38 SPV vs Venture Capital? 06:30 Why invest in the SPV 08:56 From the business owners perspective? 10:19 Use a Power Of Attorney 12:20 Use an SPV to isolate RISK #SpecialPurposeVehicle #spv #investment The purpose of this video is knowledge sharing - not legal or financial advice. The content provided in this YouTube channel should not be considered as a substitute for advice from a lawyer or other professional. You are fully responsible for ensuring that you procure sufficient legal and financial advice in relation to your business, legal and other matter