Despite It All, There’s No Denying That 2020 Was a SPACtacular Year!

Despite all the uncertainty of the past year, special purpose acquisition companies (SPACs) emerged as a key driver of M&A activity in 2020. SPACs are created as shell entities to raise capital through an initial public offering (IPO), followed by the acquisition of a privately held business, which merges with or acquires the SPAC and becomes publicly traded. According to SPACInsider, the average SPAC IPO size in 2020 increased by more than 50% from 2019. In 2020, we also saw Pershing Square Capital Management’s Bill Ackman price the largest-ever SPAC IPO, which raised $4 billion. Given the expectation for SPACs to continue to surge in 2021, now is an exciting time to get a primer on SPACs, learn how to structure a SPAC transaction, and know the trends to watch in 2021. Whether you are new to understanding SPACs or have an ongoing matter that utilizes a SPAC structure, Practical Guidance has you covered!

READ NOW »

Related Content

• 20 Key Considerations for Private Companies Evaluating Whether To Be Acquired by a SPAC
  Spot issues for the management and controlling shareholders of your clients considering going public by merging with a SPAC.
• Market Trends 2019/2020: Special Purpose Acquisition Companies (SPACs)
  Check out market trends in SPACs in this practice note.

Practical Guidance Updates
Featuring the latest updates in Practical Guidance.

• The Practical Guidance Journal
  Learn about the recent surge in SPACs in this edition featuring M&A, Finance, and Capital Markets insights.
• Document alertsare now available in Practical Guidance. You can now be notified of     This allows you to stay current on legal developments that affect your practice. Find    out how to set up your document alerts.
• Protesters’ Rights Resource Kit
  LexisNexis® supports the efforts of the organizations in this resource kit and all the advocates around the U.S. and the world who seek racial equality and justice. 

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+