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

January 10, 2021 (1 min read)

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!

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