In 2020, the US – the front-runner of SPAC markets – saw nearly 250 special-purpose acquisition companies (SPACs), compared to 59 in 2019 and only 13 in 2016. $100bn has been raised by US SPACs this year alone.
The numbers have been booming and it is not just Wall Street getting involved, as numerous celebrities and athletes have been involved in SPACs. Furthermore, increasingly popular online brokerages have contributed to the SPAC market boom, by facilitating the involvement of retail investors buying stock, sometimes based on optimistic projections made by companies that are not yet generating revenue. SPAC deals propel Q1 M&A activity to strongest start since 1980 These are telltale signs of a market that has overheated in need of a correction. In response, the US Securities and ...
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