On August 26, 2020, Bill Haddad was quoted in Pymnts.com on the rise of special-purpose acquisition companies (SPACs). Also known as “blank-check” acquisition funds, SPACs are development-stage shell companies that don’t have business plans of their own but instead merge with private companies that do.
According to the article, merging with a SPAC is a way for private firms to go public without having to go through the administrative hoops of a U.S. Securities and Exchange Commission filing. The blank-check firms have already done that, staging initial public offerings to raise money that they use to buy up privately held companies. SPAC Research has estimated that there have been 79 SPAC IPOs issued in the United States, which raised $32.1 billion. That beats the 59 such IPOs that raised $13.6 billion in 2019.
“The gene pool for SPACs has gone up because there are stronger companies doing these deals. There is a better track record and history and more credible, high-value targets," said Haddad.
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