While 2020 has had no shortage of twists and turns, one thing that has proceeded with regular monotony is the never-ending supply of special purpose acquisition companies (SPACs). While these have been around for decades, they’ve become increasingly popular as a way to take an existing company public without all the paperwork and rigmarole required by an IPO. This year, there were almost 250 SPACs, more than double the number in 2019, which raised in excess of $73 billion.
Market watchers see SPACs as having turbocharged M&A activity, something that’s set to continue for the foreseeable future. SPACs are also likely to become more widely utilized in markets outside of the U.S.