In this episode, the speakers explore why SPACs remain highly relevant despite market volatility and regulatory headwinds.
In 2021, more than 40% of new public companies listed through mergers with Special Purpose Acquisition Companies (SPACs). While SPACs have been around for decades, the boom of the last few years has dominated its narrative in the marketplace. Today, there are hundreds of SPACs seeking “transactable” targets that face potential liquidation in the next year or so if deals aren’t made. Against this backdrop, SPAC sponsors are operating in an extremely choppy market environment for SPACs and other new issues, and recently proposed Securities and Exchange Commission (SEC) regulation has increased uncertainty in an already uneasy deal-making environment.
Today’s episode explores why SPACs remain highly relevant in EY dialogue with operating companies and their backers despite the market and regulatory headwinds.
What is in store for SPACs over the next one to two years and beyond?
- Recent innovation and complexity in SPAC mergers
- Evolving negotiation dynamics in recent dealmaking processes
- Ongoing evolution of what makes an attractive operating company for a SPAC merger
- Transforming and adapting of SPACs in the face of the current challenges
For your convenience, full text transcript of this podcast is also available. Read the transcript.
Duration 30m 00s
In this seriesSeries overview
What’s in store for SPACs
How today’s economic rebalancing is impacting PE
EY-Parthenon Chief Economist, Strategy and Transactions, Ernst & Young LLP
PE Pulse: Five takeaways from 1Q 2022
What PE is outsourcing to create value
How PE can use the ‘See, Solve, Scale’ process to screen investments
Why mentoring matters for women in PE
How PE firms can win tech deals
EY-Parthenon Principal, Strategy and Transactions, Ernst & Young LLP; EY Global Head of Software Strategy Group
PE Pulse: Five takeaways from 4Q 2021