It is a reasonable extrapolation – and we are nothing at Cooley if not wildly reasonable – that more operating companies are considering going public through a merger with a SPAC (commonly referred to as a backdoor IPO) since the beginning of time. There have been some great examples of successful SPAC transactions and more on the way, and the SPACraze has reached 2019 Direct Listing fever pitch levels. More importantly, there is a huge amount of SPAC sponsor money ready to be deployed, and more SPACs being formed every day, and a number of very desirable and mature operating companies who may have been reluctant to pursue a traditional IPO in light of the market volatility over the last several quarters.
- Posted in: Insight, SPACs
- Tagged in: Private Equity, Trends