ANALYSIS: De-SPACing Successes Refuel Hot SPAC IPO Market

An unlikely champion has stepped up to drive the initial public offering market: Special Purpose Acquisition Companies. Confidence in SPACs has been fueled by some very successful de-SPACing deals—deals by which private companies go public via a reverse merger with a SPAC. Once derided and dismissed because of their shady past, SPACs, as an M&A and finance tool, have shone during these troubled times.

SPACs are an investment vehicle in search of an investment opportunity. They are shell or blank check companies, often sponsored by experienced private equity managers, that promise investors they will find an attractive merger or ...