![]() In a crowded, competitive market, SPACs have started to get creative. SPAC merger announcements this month Source: Boardroom AlphaĬompetitive market leads to creative financing in many deSPAC combinations Given market conditions, we expect to see more deal sweeteners and especially deal cancellations as we navigate volatile markets for the foreseeable future. Volatility ahead: upcoming merger votes and sponsor redemptions Source: Boardroom Alpha Today, we’ll take a deeper dive into recent SPAC deal announcements and how they’re getting done. Without committed financing, we are starting to see many SPAC deals priced at aggressive 2021 valuations fall through the cracks. Notably, deSPAC count is down to 2 so far this month, down from 9 last March.īy now, we’re all familiar with the confluence of factors causing the downward trajectory in completed SPAC mergers: regulatory scrutiny, disappointing operating results from many de-SPACed companies, and a market oversaturated with SPACs seeking deals.Ī clogged PIPE market and other headwinds closing the exits Source: Boardroom AlphaĪs we’ve seen in recent weeks, even SPACs with deal announcements aren’t out of the woods yet. But, with over 600 SPACs out there searching for a deal, the PIPE market has gotten a lot tighter. It can be said that throughout 2021, the “secret sauce” of the SPAC market was nearly ubiquitous PIPE financing, which helped support valuations and guarantee available capital. ![]()
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