SPACs Impressive Comeback: Opportunities and Risks

Amid high levels of liquidity and a strong desire for new growth companies, special purpose acquisition companies (“SPAC”s) are flourishing in 2020, often with high-profile names attached to them. In recent months, SPACs have outpaced traditional IPOs in money raised. But what are SPACs, and are they here to stay?

[1] SPAC Insider, 2020. SPAC IPO Transactions: Summary by Year. Available at: https://spacinsider.com/spac-statistics-new/ [Accessed: 11/20/2020]

[2] Renaissance Capital, 7/28/2020. SPAC returns fall short of traditional IPO returns on average. Available at: https://www.renaissancecapital.com/IPO-Center/News/69871/SPAC-returns-fall-short-of-traditional-IPO-returns-on-average [Accessed:11/20/2020]

[3] Klausner, Ohlrogge & Ruan, 11/19/2020. A Sober Look at SPACs. Available at: https://corpgov.law.harvard.edu/2020/11/19/a-sober-look-at-spacs/ [Accessed: 11/20/2020]

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