A startup is considering going public and is evaluating two options: a traditional IPO and merging with a SPAC. Which of the following statements best highlights a key difference between the two options?

A SPAC merger is usually less expensive than a traditional IPO because it bypasses the costs of an IPO roadshow and underwriter fees.

Unlike a traditional IPO, merging with a SPAC guarantees that the company will raise a target amount of capital.

A SPAC merger generally offers greater speed and flexibility but often comes with higher costs.

A traditional IPO is typically faster than SPAC mergers, which allows the firm to capitalize on favorable market conditions.