Signs of the Times – M&A Best Practices, Resilience and SPACs
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Private Equity Insights - April 2021
In today’s complex mergers and acquisitions environment, even the most successful private equity firms must continuously stay up to task when it comes to building their M&A capabilities. Intense competition, increased regulatory scrutiny and rising litigation risks are just a few reasons private equity firms and portfolio companies must invest in the right talent, processes and tools to support deal-making and avoid costly pitfalls. Strategic planning is particularly crucial, whether making business decisions around M&A or a public offering. As a result of the COVID-19 pandemic, FP&A functions have accelerated their shift in focus from tactical activities to providing enhanced analytics and insights to support critical business decisions such as public offerings.
Number of Global SPACs Brought to Market Year to Date – 2021
258 (as of March 5)
Number of Global SPACs Brought to Market in Full Year – 2020
Global SPAC IPO Proceeds
$76.7 billion (as of March 5)
SPACs vs. IPO
- $60.2 billion – U.S. SPAC issuance year to date (as of end of February 2021)
- $24.3 billion – U.S. IPO issuance year to date (as of end of February 2021)
- 137.6% – increase in total deal value of U.S. SPAC issuance in February 2021 over previous month
- 61.5% – increase in total deal value of U.S. IPO issuance in February 2021 over previous month
Sources: Refinitiv, SIFMA
For more on SPACs, read our insights on the Securities and Exchange Commission’s latest effort to allow de-SPAC companies (this term describes the SPAC acquisition/merger route of going public) an internal controls reporting outcome similar to that of companies that take the regular, non-SPAC IPO route – and what it means for your firm.